If it’s been difficult for you balancing your money with the widespread inflation, then you may want to brace for more economic hardship.
Those extremely high prices for gas, goods and services were the catalyst for the Federal Reserve to implement a third consecutive raising of interest rates by 75-basis points last week.
The numerical jargon that often accompanies shifts in the economy can leave everyday Americans guessing what will happen.
Guy Williams, CEO of Gulf Coast Bank and Trust, came on to the Newell Normand Show this week and explained the significance of Fed Chair Jerome Powell’s announcement in a way almost anyone can understand.
“If you sit down at the dentist, in the dentist chair and you open your mouth, the dentist looks in and says, ‘this is going to hurt.’ That’s what Chairman Powell said to the U.S. economy. This is going to hurt, and literally in those exact words,” said Williams.
In the attempt to bring down inflation and slow the economy to a point where prices can settle into a reasonable zone, Williams said the higher interest rates will likely bring down the fortunes of an untold amount of people.
Williams said we should brace for high unemployment, more business failures, a slower economy and bigger challenges in making ends meet. Williams said Wall Street has been staggering since the Fed announce the interest rate hike.
“That really pushed the market, and you had a giant sell off across all the different sectors of the stock market because people realized the Fed is serious. They’re going to keep raising rates and there’s not an end in sight right now,” Williams told Newell Normand.
