Episode 19: The Invisible Tax We All Pay: How Inflation Is Impacting Your Financial Future

The markets have sold off.It's been a violent, volatile last couple of sessions and the reason is inflation.Inflation is an invisible tax on all of us. It will eat and erode the strength of the dollar. It will cut into your budget, it will tear everything that you do apart. Interest rates for mortgages have gone up. Home price sales have gone down. The Fed cannot control food and energy, which is 20% of all of our inflation.Inflation has impacted far beyond the reach of the Fed and its rudimentary tools.The Fed has two tools right now, raising the Fed funds rate, which makes credit more expensive. Credit is about $50 trillion around the world versus cash is only about $3 or $4 trillion. Credit is what makes the world go round.The inflation data was so high and the Fed has been so data-dependent as they like to say that on Monday afternoon after the market closed, they leaked out to The Wall Street Journal, Axios, and CNB, that they were going to do a 75 basis point rate hike after a couple of months of telegraphing that they will absolutely do 50 basis point rate hikes for three meetings in a row. The largest rate hike since 1994.Stay up-to-date on all the latest news, updates, and exclusive content by following us on all of our social media accounts! https://linktr.ee/kptalksdollarsandsense#KPTalks