Personally, I think we are a bit away from any real recession. There are a few scenarios that should tell us when we are near: Sharp rise in wages Rising inflation Fed gets aggressive with interest rates Dip in consumer confidence Business becomes cautious about investing in growth In addition, any trade war talks that are prolonged and or a handful of leading indicators weaken (a leading indicator is a factor of economy that … [Read more...]
Archives for February 2019
Relationships: Inflation and the Fed
When the economy heats up, inflation rises. The Fed will step in and raise rates in an effort to decrease borrowing and increase savings to slow things down a bit. We are in an environment that is tempered with gradual adjustments and one that should allow modest growth with no real threat visible. It is my opinion that we simply need to keep balance across the board. In other words, so long as your house is in reasonably good order, I see … [Read more...]