HOLD ON, the FED raised rates again?

So FOMC was today and you can guess what happened. The FED raised rates… AGAIN. 25 bps to be exact. Rates are now at the highest levels since 2007. Sitting at over 5%.

What do you guys think, is this a problem?

I will tell you our opinion of what’s going on.

Recently we have seen more prominent bank failures… and we are going to see more. Could this be because of mismanagement at banks, absolutely.

However in the bigger scheme of things, what is happeing is money is leaving these regional banks and heading straight to the big banks. JPMorgan, Bank of America, Wells Fargo and Citi. In the past quarter alone, BILLIONS of dollars have left these small banks and have gone right to the big banks. Higher interest rates are going to destroy these small banks.

Many economists have said that the FED doesnt need to continue to raise rates because Consumer Price Index(CPI) year over year is down from 9% to 5%. A bigger indicator of this is that average rent prices have started to decrease.

The FED can pause the rate hikes going forward, but who knows what the big picture motive is here. We personally think there is a lot more than meets the eye.

Bottom line is everyone needs to be obsessing over their finances. If you are not concerned over it, then someone else will be and eventually what is in your pocket will be in their pocket.

Do not let them stick their hands in your pocket.