More To The Story with Staley: Inflation

Dave talks to a local financial expert about what's to come

CHATTANOOGA (WDEF) – Just days ago, the Federal Reserve raised the interest rate again. Up three quarters of a point.

That makes it harder to buy a home. And makes your credit cards more expensive.

It’s all done to curb inflation, with consumer prices rising over 8 percent the past year alone.

Local financial pro John Vandergriff of Blue Ridge Wealth Management says history indicates raising the interest rate is the understandable move.

But there’s a reason we’re not calling the current situation a recession.

“What’s made this situation different is the dropping unemployment. Normally, when interest rates go up, as well as a drop in GDP and a high unemployment rate…..that launches a recession. Really, the lack of unemployment drops has held people off from calling this a recession.”

Vandergriff, who’s been a financial planner for almost 11 years, says it’s all a delicate balance. He says in the long term, things should even out.

But with that, Vandergriff believes this is a unique time. Because the national debt has never been higher. And the overall tax bracket has never been lower.

“A lot of the headlines are about inflation. And rightfully so. But even if the numbers do come down, I feel that tax increases in the future will have a similar impact on the inflation that we see today.”

In the last eight months, the interest rate has jumped three and three quarters percentage points.

Vandegriff agrees the rate will jump even higher than first expected.
Dave Staley, News 12

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