"Fed Tightening" is a term we've been hearing a lot lately. Today, Alex Cabot and Ed Lambert of Birch Run Financial explain the term, and why it's relevant now, at the end of 2021.
The Federal Reserve, or "The Fed," has two main weapons in its arsenal: Short Term Interest Rates and Money Supply. Alex explains how these two tools can be used to bolster a struggling economy, or, like now, slow the rate of inflation.
Ed explains why this is a relevant discussion now. Recent policy has gotten us through the pandemic, but now, with the rise of inflation, savers are disadvantaged when you compare them to borrowers. Also, for Americans living paycheck to paycheck, their wages may not be keeping pace with their bills. And finally, inflation brings with it the possibility of greater inflation.
Birch Run Website: www.birchrunfinancial.com
Birch Run Financial email: info@birchrunfinancial.com
Birch Run Financial Phone Number: (484) 395-2190