Rising Inflation in 2022 

We are sharing a brief summary of what St. Louis Federal Reserve President, James Bullard, said in an interview with CNBC. He cautioned that inflation could get much worse without central bank action on interest rates (Cox, 2022). In addition, he believes that there’s been too much emphasis that inflation will dissipate, and is pushing the narrative that more than ever, we’re at risk of the 7.5% clip we’ve seen over the last year getting worse. 

Increasing Interest Rates in 2022

Throughout the pandemic, the federal reserve has resisted raising interest rates due to clogged supply chains and outsized demand, but now, it’s predicted that they will start raising interest rates in March, in an effort to contain price surges that are running at the fastest pace in 4 decades. Following this, Bullard anticipates that there will be 5 to 6 more rate hikes at 25 basis-point increments, totaling a full percentage by July 2022. 

What Now?

We can’t blame you if you’ve been on the fence about moving due to low inventory and rising inflation. However, based on the analyses of James Bullard and others in the industry, it’s looking like market conditions might worsen. If you are considering a move, it is our advice to take action now and sell your home for the highest prices we’ve ever seen and buy before interest rates increase! Call about our Guaranteed Sale Program or our Stay in Your Home Guarantee, where you can take advantage of the market by selling your home now and staying in your home for up to twelve months. Call us now at 854-800-3100!

 

CITATIONS

Cox, J. (2022, February 17). Fed’s Bullard says inflation ‘could get out of control,’ so action is needed now. CNBC. Retrieved February 23, 2022, from https://www.cnbc.com/2022/02/17/feds-bullard-says-inflation-could-get-out-of-control-so-action-is-needed-now.html