Higher For Longer. That is what Global Central Banks are signalling.
Higher For Longer. That is what Global Central Banks are signalling.
Why?
Because the Fed’s inflation target is 2%. And we are not there yet. There is no reason for them to drop interest rates when inflation is still relatively high.
And if the Central Banks & the Federal Reserve (Fed) make a pivot, dropping interest rates, it will be stimulative in nature, and that will stoke inflation back up again.
This was what happened in the 1970s when the Fed dropped interest rate prematurely, and inflation roared back. This forced Fed Chairman to increase interest rate closed to 20%. It plunged the economy into a recession…which eventually dropped inflation back to acceptable levels.
Furthermore, the unemployment rate is still low & wages are still increasing slowly. This allows landlords in the US to increase their rents.
Check how this landlord make use of inflation & rising interest rates to help him generate more passive income.
So, where do you see interest rates going in 2024? Up, Down or Same?
What about the economy?
Leave them down in the comments below.
We love to hear your views.
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PPS: I am running a cohort based course – Remote Cashflow Rentals Live Online Masterclass on 27th, 28th & 29th Oct 2023 to teach how you can buy your First Cashflowing Rental Property and get paid while waiting for appreciation. Enroll here.
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