When it comes to YOUR MONEY, we want to take it a step further. That's why Mark Grywacheski appears on Good Morning Quad Cities every Monday to give us his analysis of the latest business, economic, and financial news.
On Monday, June 24th, Mark talked about the U.S. Federal Reserve changing its interest rate policy. It may actually start reducing interest rates this year, after raising interest rates in 2017 and 2018.
"By raising interest rates, the Fed increased the cost of borrowing on credit cards, short-term bank loans and variable rate mortgages," explained Mark. "This inherently reduces consumer and business spending, which slows down the pace of economic growth. If and when the Fed does start to lower interest rates, it will make it cheaper for consumers and business to buy goods and services on credit, and thus further stimulate economic growth."
The possibility of lower interest rates is causing the stock markets to surge to near all-time highs last week. However, Mark still expects there to be volatility. Click the video above to hear our entire conversation.