For months, you’ve been hearing me say a recession is coming. Well, I wasn’t talking nonsense. Earlier this week, the Fed ‘ripped the band-aid off the wound’ with an interest rate hike that will lead to the recession.

On Wednesday, they raised its benchmark interest rate by 0.75%. This is the biggest increase since 1994.

But what does that mean for you? How is it going to affect you and your family? Lemme explain.

Raising interest rates to fight inflation

The Fed interest rate hike is an attempt to fight inflation and send the market into a fit. They’ve basically created mass panic.

Here’s how it’s going to affect the economy.

Car payments, mortgages, and credit card payments are going to increase. This means that banks are going to charge people a higher rate for borrowing from them; the result is higher monthly payments.

And it doesn’t just stop with loans. Good luck to the people who invested in stocks, because the stock market is going to see prices fall after being in a bear market since January. Most consumers are going to cut their spending, which reduces demand.

What do you think comes out of that? Companies earn less and investors pay less for shares — i.e. stock prices fall.

Job cuts increase and home buying slows down

Look, when a company earns less, they’re going to cut labor. So, the easiness of finding a job is going to come to an end.

Now, let’s talk about home buyers. People are going to be buying a lot fewer single-family properties because they’re going to be priced out of the market.

But you know what won’t decrease?

People renting apartments.

Everything I just mentioned is going to contribute to a recession. I’ve been telling you this forever now.

The U.S. economy is going to see a period of slow growth coupled with inflation. In this situation, your success will depend on the choices and commitments you make.

Prevent the recession from affecting you

Over the years, I’ve always seen opportunities like this as a challenge. I’ll never forget the 2008 housing crisis, the way everyone was panicking and losing everything they had.

Many thought it was the end. I saw the massive opportunity to continue to create wealth.

Listen, while most people are going to be contracting in the coming economic conditions, I’m going to see it like I did last time around — as an opportunity to grow. And I want YOU to be a part of this growth.

With the right preparation and knowledge, you too can prosper despite what is happening around you. The Fed interest rate hike shouldn’t make you panic. It should push you to take action.

On June 25th, I’m exposing all the strategies I used to dominate in tough times through real estate investing. You need to be part of this.

Get control of your money now and RSVP to my FREE Real Estate Live Training.

1 COMMENT

  1. The other day, while I was at work, my cousin stole my apple ipad and tested to see if it can survive a 40 foot drop, just so she can be a youtube sensation. My iPad is now broken and she has 83 views. I know this is completely off topic but I had to share it with someone!

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