MOLINE, Ill. — On Wednesday, the U.S. Federal Reserve cautioned Americans it will soon begin raising interest rates much faster than previously affected, as the nation confronts the highest level of inflation in decades.
Financial advisor Mark Grywacheski with the Quad Cities Investment Group joined us Monday, Dec. 20 on Good Morning Quad Cities and said, over the past year, consumer prices have risen 6.8%, a 39-year high.
Graywacheski said last week he believes inflation will get much worse before it gets better.
"If inflation starts getting too high, and consumer prices start to get out of control, it risks a sudden collapse in consumer spending because people simply can't afford things anymore," Graywacheski said. "And, it risks sending the economy into a recession."
Graywacheski said this means the government will raise interest rates to disincentivize buying goods and services on credit. This will allow for a gradual reduction in prices, Graywacheski said.
Watch the video above for the entire conversation with Mark from Monday morning.