How Do Interest Rates Affect the Economy – and Your Nest Egg?

Last week I tried to provide some calm perspective on the recent fluctuations in the markets. Again, in summary: the corrections we're experiencing right now are perfectly normal, and not nearly as scary as some of the headlines would have you believe. One of the main factors that's contributing to this volatile October is the pace and expected duration of the Federal Reserve's current rising interest rate cycle. As you probably read, President Trump wasn't very happy with the Fed, and a lot of folks on Wall Street weren't either. So why the rate increase? If our economy is on track for yet another positive year, why did the Fed make an adjustment that tends to spook investors and slow things down? On today's show, we're following up on last week's news to break down how changing interest rates affect the economy and various investment vehicles. Hopefully this discussion will help folks understand what the Fed's move really says about where the US economy is as 2018 draws to a close.