David Fischer recently visited the KFNX studios to discuss the state of the economy with host Carol Blonder. He warned that since the FED is trying to normalize interest rates and Congress seems unwilling or unable to raise the Debt Ceiling, we could be in for an economic collapse that hasn’t been seen in this country for many years.
Interest Rate Increases, The Debt Ceiling, and the Budget Could Create the Perfect Storm
- The Fed has raised interest rates twice this year already. David thinks their goal is to normalize rates to 4-5%. The Fed has been reluctant to fully commit to this plan since the stock market takes a huge hit every time they raise rates by a percent. Something’s got to give though since the Fed is losing a lot of money by keeping their rates artificially low.
- Congress will return to session this week, but David thinks a budget resolution is highly unlikely given that Congress can’t seem to compromise on anything lately. He also questions the likelihood that the debt ceiling will increase which will lead to a default. This could cause a catastrophic collapse in the global economy.
- Neither Congress nor President Trump seems willing to address the real issue of the every increasing national debt. David says safe estimates are that it will reach 40 trillion dollars by the end of Trump’s first term.