Terry Sawchuk on News On with Miranda Khan: Biden Endorses Interest Rate Hikes

Jan 27, 2022 | Blog, In the News, News On with Miranda Kahn

Any information discussed in this article is for educational purposes only. It is not meant to be any kind of recommendation or financial advice. The information contained in this video is intended for informational purposes only. Any opinions are those of Terry Sawchuk and not necessarily those of JW Cole Financial, Inc. or JW Cole Advisors, Inc.

Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.

 

The time to take advantage of our current low interest rate environment may be coming to a close. On January 25, President Biden endorsed what the Federal Reserve has signaled will be at least three interest rate hikes this year. If these rate increases do occur, what might this mean for investors? News On with Miranda Khan turned to Terry Sawchuk, founder and chairman of Sawchuk Wealth, for insight.

“As far as inflation is concerned, they are shadowboxing the wrong ghost here in my opinion,” says Sawchuk. While he is not saying inflation does not exist, he believes that this inflation is not what the Fed may make it seem. Rather, it is the byproduct of policies put in place throughout 2021 and it will likely roll over soon.

“We have probably already seen a peak in most of the inflation,” Sawchuk explains. “If they continue down this path for hiking interest rates, tightening monetary policy, there’s a good chance they are going to throw us into a recession.”

While some critics argue that a recession is the only way out of inflation, Sawchuk reasons that this may not be worth the cost. “You’re going to put people out of jobs and you’re going to shrink the economy,” Sawchuk says. “While you think you’re going to put a handle on inflation, what you’re also going to do is massively raise our debt. Instead, we need to grow out of this.”

Click here to watch the entire segment.

 

Any information discussed in this article is for educational purposes only. It is not meant to be any kind of recommendation or financial advice. The information contained in this video is intended for informational purposes only. Any opinions are those of Terry Sawchuk and not necessarily those of JW Cole Financial, Inc. or JW Cole Advisors, Inc.

Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.