Have you noticed prices going up on everything from groceries to gas, from electronics to automobiles? There's a reason for that.
It's because of inflation, which has reached its highest level in decades - or in some cases - has set new records.
Financial Expert Mark Grywacheski from the Quad Cities Investment Group joined us to talk about "Your Money" on Good Morning Quad Cities Monday, June 21, 2021. He says the problem is wages are not keeping up with inflation, which means consumers either have to cut down on spending or take on debt to buy the same amount of goods and services they were buying before. On top of all that, the U.S. Federal Reserve is raising interest rates:
"As interest rates go higher, it increases the cost of borrowing to buy goods and services on credit - such credit cards, bank loans, mortgages," he explained. "This inherently reduces consumer and business spending which helps keep a cap on rising prices."
Mark adds that all this debate on how high inflation will get, how long will it last, and what the Federal Reserve will do about interest rates has - and will - cause a lot of volatility in both the stock and bond market.
To hear more of our conversation, click the video above.