The federal reserve is trying to get ahead of inflation, raising rates to unprecedented levels. This could potentially be a very bad three years ahead of us for bonds, equities, and real estate.
The events in monetary policy over the last few weeks have reminded a lot of us that we are economically behind the curve.
Now, the Fed intents to raise rates at a fairly aggressive frequency. It is expected that there will be at least six to eight half-point increases this year alone, and as many as 16 increases over the next 18 months. With those rate hikes, we may see mortgages jump to 10-11 percent. With people having trouble getting home financing on the current 3 ½ percent, it looks like we’re in for a rough road ahead.
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