Terry Sawchuk on News On with Miranda Khan: Annual Inflation Rate Nears 7%

Dec 16, 2021 | 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 annual U.S. inflation rate has now surged to almost 7%. This marks not only its highest rate since 1982 but also a new hurdle for families to face this holiday season as prices on most goods and services nationwide continue to increase. To learn more about how rising inflation rates may impact your finances, News On with Miranda Khan turned to Terry Sawchuk, founder and chairman of Sawchuk Wealth, for insight.

“One of the things that is a byproduct of this is that the Fed may try to raise interest rates, which I believe would be a policy mistake because ultimately I believe this is more of a supply issue than a demand issue,” says Sawchuk. “As we get into next year, some of these supply chain things will resolve themselves. Then there will be demand destruction.”

For example, if gasoline ever reaches $7 a gallon, many families will have to make difficult choices and cut back their spending in other areas, such as holiday shopping. This paired with interest rates potentially rising may ultimately end up damaging sales and the economy.

“As we get into 2022 and this continues to spill over, I think demand is going to slow down,” Sawchuk explains. “If the Fed makes a policy mistake and begins raising rates, continues to cut bond purchases and other things, they could actually be doing the wrong thing at exactly the wrong time.”

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.