The Ukraine Crisis Affects Federal Reserve Policy

Aggressive interest rate increases could potentially create a recessionary environment. What does this mean for your Investments Strategy?


The Federal Reserve has been very clear that they’re going to be more aggressive with its interest rate policy. Now, we have increased inflation and a potential for a recession as a result of the Ukraine crisis. If the Federal Reserve is overly aggressive with its interest rate policy and increases rates too high, potentially they can limit gross domestic product and put us into a recessionary environment.



This looks like history repeating itself from the 1970s. This decade featured a period of stagflation, which had ultra-high interest rates, with recession and low growth, long gas lines, and shortages. That's what you can expect if we have a continued crisis like we have today. Protect yourself by moving your capital into defensive asset classes to lock in your gains from the last three or four years.

If the Federal Reserve is overly aggressive with their interest rate policy and increases rates too high, potentially they can limit gross domestic product and put us into a recessionary environment.
 

Take the time, schedule a consultation, and allow us to do what we have been doing successfully for decades. Call 817.912.1569 to schedule an appointment with us or attend a local event and start building your own customized strategy. Use the link below to schedule an appointment today.




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