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Money Monday: Explaining the federal reserve interest rate hike
Updated: 8:06 PM EDT May 9, 2022
>> ALL Y DATHIS MONEY MONDAY, WE ARE FOCUSED ON SAVING YOU MONEY AND HELPING MAKE MORE INFORMED FINANCIAL DECISIO.NS NO JOINING US TODAY IS FINANCIAL EXPERT JOE WILSON. LET’S GET RIGHT TO IT HERE, I THINK A LOT S HAHAPPENED ESPECIALLY HERE SINCE LT AS WEEK. THE FEDEL RARESERVE RAISING INTEREST RATES LAST WEEK FROM .75 TO 1%. A LOT OF PEOPLE VERY CONCERNED, WHAT DOES THIS MEAN TO THE AVERAGE PEONRS >> WE JUST DID 50 BASIS POINT. WHAT PEOE PLNEED TO UNDERSTAND, THIS IS HISTORIC. WE HAVE NOT SEEN A 50 BASIS POINT MOVE IN 20+ YEARS. THIS IS THEIR WAY TO GHFIT INFLATION. THE CHALLENGE IS THAT IT IS AFFECTING THE MODERN RETIREES POCKETBOOKS BECAUSE THE AVERAGE BOND FU ND THEY MIGHHAVE, IT IS DOWN 11% TODAY. FOR THE CONSUMERS,DEBT IS GETTING MORE EXPENSIVE. >> IS THIS A RESULT OF THE RATE HIKE? IF NOT, HAVE LOWER POCKETS BE AFFECTED? >> EIGHT IS INFLATION. THE FED HAS TO FIGHT BACK, ITS IOUT OF CONTROL. W HODO THEY DO THAT? TH REYAISE INTEREST RATES. SO FOR YO LURISTENERS OUT THERE, DEBT IS GETTING MORE EXPENSE.IV >> THE IDEA THAT IT WILL EVENTUALLY LEVEL OUT ALL THE OTHER THINGS WE ARE BUYING THAT EVENTUALLY THE PRICES WILL GO DOWN, RIGHT? >> THAT IS THE GOAL. WEHAD COVID━19, WE PRINTED A LOT OF MONEY. WE TURNED THE ECONO MY OFF. PRICES HAVE JUST GONE OUT OF CONTROL. YOU CAN’T FIND A CAR IN A CAR LOT,HI CCKEN IS THROUGH E THROOF. THIS IS HOW THE FED HAS TO FIGHT INFLATION. THEY ARE MAKING MONEY HARD TO COME BY IN TRYING TO SLOW IT DO. >> I HEARD YOU SAY DEBT IS GETTING EXPENSIVE, GOTTA GET RID OF IT. PEOPLE ARE NDWOERING SHOULD I SAY, GET RID OF DT? >> GET THE FREE MONEY IN A MATCH. BUT ABOVE THAT, IF YOU HAVE CONSUMER DEBT, YOU HAVE TO ANNIHILATED. IF YOU ARE PAYING 20%, THAT IT’S HARD TO GET YOUR MONEY BACK IN THE MARKET RIGHT NOW. SAFER TOMORROW, BUT ALSO ANNIHILATE ANY CONSUMER DEBT YOU HAVE RIG NHTOW >> IF YOU HAVE FINANCIAL QUESTIONS, SEND THEM OUT TO US. HE REIS ONE OF THEM, 10 WANTS TO KNOW, WHAT IS THE IMPACT ON THE STOCK MARKET? WHAT SHOULD BEGINNERKNS OW ABOUT INVESTING RIGHT NOW? PEOPLE ARE FREAKING OUT WHEN YOU LOOK AT YOUR 401(.K) >> YIFOU HAVE A LONG━TERM IN MIND, YOU HAVE TO THINK THAT THIS MONEY IS FOR 40 YEARS DOWN THE ROAD. THIS IS WHAT BUYING LOW FEELS LIKE. WHEN THINGS ARE ON SALE, TH ISWENT LIFE. GET A SHOPPING LIST TOGETHER, THERE ARE AMAZING COMPANIES THAT HAVE HAD A TOH UGSTART TO THE YEA R. THIS IS THE OPPORTUNITY TO START BUYING IN A LITTLE BIT AT A TIME. GET THOSE POSITIONS. >> SO IF YOU HAVE TIME, INVEST IF YOU HAVE THAT EXTRA MONEY, BUT WHAT TIME IS NOT ON YOUR SI?DE >> CALL PROFESSIONAL. YOU NEED TO SEE HOW INTEREST RATES GOING UPS IGOING TO AFFECT YOUR PORTFOLIO. >> A LOT OFPEOPLE JUMPING INTO THE STOCMAK RKET FOR THE FIRST TIME, THERE WONDERING IF THEY SHOULD GET INDIVIDUAL STOCK, OR DO AN INDEX FUND TO BUNDLE THEM ALL TOGETHER? >> GD OOQUESTION, YOU SEE INDIVIDUAL NAMES ON SALE, BUT THE PROBLEM IS DIVERSIFICATION YOU WANT TO BE AS DIVERSIFIED AS POSSIBLE. I’M NOT SURE THERE’S A WRONG ANSWER, YOU WANT TO BE DIVERSIFIED, YOU DON’T WANT ALL YOUR MONEY IN ONE STOCK, BUT DEFINITELY, ETF WOULD BE GREAT ANDFEW SHARES OF THE SOMETHING YOU REALLY LIKE. WE ARE SENGEI DRASTIC DISCOUNT IN SOME OF THESE COMPANIES. IF YOU LIKE IT, THIS IS THE TI METO START NIBBLING IN. >> JOE, Y AOURE SO REFRESHING. WE A REALL STRESSED OUT ABOUT OUR MONEY RIGHT NOW AND YOU JUST SEEM SO BUBBLY AND HAY.PP >> DON’T LOOK AT THE MARKET TODAY, IT WASOT N A GOOD
Money Monday: Explaining the federal reserve interest rate hike
Updated: 8:06 PM EDT May 9, 2022
On this Money Monday, we’re focused on saving you money and helping you make more informed financial decisions.Accredited asset management specialist Joe Wilson joined WLWT to answer all your financial questions.First, Wilson was asked about the Federal Reserve that just made a historic interest hike from .75 to 1%. We asked him to explain why the Federal Reserve is doing this.Wilson said it’s the Federal Reserve’s way to fight inflation. The challenge is, it’s affecting the modern retirees’ pocketbooks.We’ve all seen prices going up. Wilson was asked if that’s a result of the interest rate hikes.Wilson said the cost of goods rising is due to inflation.Watch more in the video player above.
On this Money Monday, we’re focused on saving you money and helping you make more informed financial decisions.
Accredited asset management specialist Joe Wilson joined WLWT to answer all your financial questions.
First, Wilson was asked about the Federal Reserve that just made a historic interest hike from .75 to 1%. We asked him to explain why the Federal Reserve is doing this.
Wilson said it’s the Federal Reserve’s way to fight inflation. The challenge is, it’s affecting the modern retirees’ pocketbooks.
We’ve all seen prices going up. Wilson was asked if that’s a result of the interest rate hikes.
Wilson said the cost of goods rising is due to inflation.
Watch more in the video player above.
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