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interest rate spike

Fed’s Raise Rates For First Time Since May 2000

On Wednesday, May 4, 2022, the Federal Reserve had a policy meeting in Washington D.C. that may have a huge impact on all American families and businesses. It has been 22 years since the last time the central banking system last raised interest rates by 0.25%. The reasoning behind why this is being done is the fact that inflation has taken a huge toll on the economy in all ways, shapes, and forms; and raising interest rates will help subsidize the impact that inflation has had on the economy. This will be an attempt to nationally lower the inflation rate and rates of all goods and commodities. By raising interest rates now, the eventual hope is that by 2024 inflation rates will be stabilized and in the long run reduce significantly from the spike we all have been experiencing. With inflation, and now plus an interest rate hike, both investors and retirees have been trying to find ways to preserve their wealth. With the unpredictability of the stock market and how bonds and yields have been losing their value, gold and silver have helped safeguard many investor’s fortune over time. Even since the pandemic, most investors have been flocking toward gold and silver. The time to get educated on how gold and silver can add value to your wealth is now! The executive team at Allegiance Gold can help guide and educate you on the importance of why gold and silver will preserve your wealth through time. Make sure to call 844-790-9191 today!

Here are some important facts to keep in mind about this historic interest rate hike:

The Federal Reserve raised interest rates by 0.25%

This rise in interest rates comes from the continuous rise in inflation and the Fed’s action of trying to subsidize inflation rates in the long run.

Volatile markets were prepped

Despite the high volatility of the market over the past years, the markets were ready and prepared for an interest rate hike. As soon as the Fed’s raised interest rates, the dow rose 150 points.

Historic rise in interest rates

The last time that the Fed’s raised interest rates were back in May 2000. This was done in 2000 so the Feds could fight off the early “dot-com era” and the internet bubble.

With the interest rate hike finally coming to fruition, there is still plenty of uncertainty if whether or not this was actually a good move for the Fed’s to push through with. While on paper and through some facts that have circulated, this does seem like a good move but we will have to find out if it actually plays out the way the Fed’s want it to. One thing may be certain though, gold and silver will be there to help hedge against uncertainties and these current times of inflation. Make sure to fill out the form on the bottom to receive your FREE Gold IRA guide or call Allegiance Gold at 844-790-9191. Don’t wait any longer to act on preserving your financial well-being!

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