The Federal Reserve is expected to raise interest rates at it meetings later today.
Interest rates are something people talk about a lot. For years after the Great Recession, the Fed held the line on interest rates. But that started changing in recent years. So what does this mean to you?
“The banks may change their rates. If they do, your mortgage, if you are trying to get a new, fixed mortgage, may change,” explained Andy Smith, who hosts ‘Investing Sense on Saturdays on KTRH.
Smith and many experts are expecting at least one more raise in the interest rate this year after today, and he says this is the result of a strong economy.
“The optimism is well founded. The Fed wouldn’t raise rates if there were concerns. If you’re seeing a rate hike, you are seeing potential for optimism,” Smith said.
But there are people who are warning of doom and gloom down the road, despite the strong economy we are enjoying under President Trump.
Some experts are calling what they see coming as “worse than the Great Depression.” Houston financial analyst Richard Rosso says he isn't putting too much stock into predictions trying to throw cold water on the Trump economy.
“Financial disaster headline porn is clickbait. It works really well. But most disasters come when you least expect them,” Rosso stated.
That said, there are troubling signs. Household debt is higher than it was ten years ago and so are car loans. Rosso says if the predictions turns out to be right it will be because of debt, but not consumer debt.
“The next crisis will be debt related, specifically corporate debt. And the Fed will be the catalyst,” Rosso said.