Fed Raises Interest Rates

Issue 8.30

July 29, 2022

Federal Reserve Bank Raises Interest Rates

"Recent indicators of spending and production have softened. Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.

"Russia's war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks.

"The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 2.25 to 2.50% and anticipates that ongoing increases in the target range will be appropriate. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in May." Read more >

Watch the press conference >

Read the full transcript >

INVESTMENT STRATEGIES FOR AN INFLATIONARY WORLD

The investment industry ended 2021 with an abundance of optimism. Many areas of the market were considered overpriced from a “fundamentals” standpoint, and growth stocks repeatedly hit high watermarks last year.

Throughout most of 2021, the Federal Reserve Bank told us that inflation was transitory. It seems they were wrong. The Fed has two jobs: (1) maintaining maximum employment and (2) ensuring price stability, or in other words, keeping inflation near the two percent target. The Fed has done a great job with their first objective, but the inflation rate has spun out of control. As a result, many stock markets around the world have experienced a bad first half of 2022. How do we as investors protect ourselves in this type of environment? Read more >

SECURING YOUR FINANCIAL FUTURE

GOLD AS A HEADGE AGAINST ECONOMIC & GEOPOLITICAL TURMOIL

In April 2022, the annual rate of inflation surged to 8.5 percent. That is the most rapid year over year increase in inflation since December 1981 when annual inflation reached 10.3 percent.

Rising inflation, the COVID-19 pandemic, and the Russia invasion of Ukraine have compounded the geopolitical and economic distress that surfaced since the pandemic began more than two years ago. The resilience of the U.S. economy and strength of the dollar are being tested under these difficult and unprecedented conditions. At times like this, gold investments come into focus. Read more >

RESOURCES TO HELP

YOUNG ADULTS REACH

THEIR FINANCIAL GOALS

Back-to-school season is upon us, and it is important to discuss spending habits as well as tips on budgeting and saving. A recent Bank of America Better Money Habits survey found that while Gen Z is knowledgeable about basic financial concepts, knowledge levels start to decrease when it comes to topics more critical to securing a financial future—

such as credit scores, paying down debt, applying for/managing credit cards, investing, and saving for retirement.

Learning more about your money can

help build financial know-how. Here are some suggestions to consider >

SEEKING NOMINATIONS!

MARVIN S. GILMAN BOWL

The Gilman Bowl was established as a tribute to small business leadership. It is named in memory of Marvin S. Gilman, who served as an exemplary leader and a paragon of small business in Delaware. The identity of the recipient of the Gilman Bowl is held confidential until its presentation at the Superstars in Business awards luncheon on November 2.

The State Chamber's Small Business Alliance is now accepting nominations for this award of distinction to an individual–not an organization–who has made outstanding contributions to the small businesses and nonprofit organizations of Delaware. Nominate someone you know >

President's Message

Did you know that there are approximately 17.4 million veterans in the United States? The latest U.S. Census states that the veteran population in Delaware is roughly 65,000. The State Chamber, along with several other partners, work diligently with veterans’ groups to find job placement opportunities for those who have left the armed services but need or desire to keep working. Not too many years ago, veteran unemployment was high. Yet through the efforts of many, employers targeted vets with job opportunities and the results were positive. Read more >

PHOTOS OF THE WEEK

DSCC's Kelly Basile interviewed

Susan Kelliher of Chemours and Megan Couch of Integrity Staffing Solutions for

an upcoming podcast.

Members of The Partnership, Inc.'s

board networked with Intern

Delaware participants at

Constitution Yards.