Understanding The Fed's Role in Fighting Inflation

The Federal Reserve (Fed) and their rate hikes have been a topic of conversation for many months now. It can be a bit confusing to make sense of what exactly the Fed has been doing and how it effects our daily life.

To break it down, the Fed is the US central banking system and the most powerful economic institution in the United States. The Fed is responsible for regulating the financial system, setting interest rates and managing our country’s money supply. Over the past few years, we have seen how the Fed has focused on how they can slow down rapid inflation without damaging economic growth which has been a slippery slope since the COVID-19 pandemic and 2022 Russian invasion of Ukraine. 

When the Fed raises interest rates, it’s purpose isn’t to make life challenging but to have a more long-term result. When prices for goods and services are high, the goal is to decrease the demand and restore price stability. In short- the higher the price, the lower demand, resulting in prices should fall. The rise in interest rates is felt in our mortgage and auto loans but does provide a positive impact with higher savings account rates.

The Chairman of the Fed is Jerome Powell, he and his team consider a wide range of economic data before determining the next move regarding rate hikes. Reports such as jobs and inflation data. The Fed generally believes that an inflation rate of 2% is acceptable for a stable economy.

We hope this helps break down more of the Fed’s responsibilities and gives more clarity of the current economic state.

Above is an LPL Financial video on “Reasons Why Powell Will be Proceeding Carefully”

Click here to read "More Facts About the Federal Reserve and Inflation"

Did You Know?

Downsizing & Donation Locations 

One questions that is brought into consideration as we age is- Should I downsize my home or Should I stay in my current home? Even if you chose to stay in your current home, decluttering can help make your life more organized, simplistic and in some instances, a safer living space.

Downsizing is the process of moving into a smaller home, typically with less square footage which may include moving into an assisted living facility, retirement community or family member’s home for assistance. Click here to see why seniors chose to downsize.

Did You Know:

• The typical seller’s previous home had three bedrooms, 2.5 bathrooms and was between 2,000 and under 3,000 square feet _{(Source: Zillow})
• The typical home seller in 2020 was 60 years of age, had a median household income of $93,200, and lived in their home for 10 years _{(Source: 2022 National Associated of Realtors profile of home buyers and sellers.)}
• Roughly 51% of retirees age 50 and over move into smaller homes after retirement. _{(Source: Seniorliving.com)}
• 64% of seniors say they plan to stay in their current homes. _{(Source: Seniorliving.com)} ​

Within and around the Saratoga Springs area, we have plenty of organizations that accept clothing, furniture and household items that you are able to donate to! So, whether you chose to downsize or just want to clean out your current living space, take a look at the organizations throughout the area that will accept your gently used items.

Expenses That Drain Your Retirement Account

While retirement planning, it can be tricky to figure out exactly how much money you will need to live comfortably. The cost of retirement depends on a variety of factors, such as, the age you chose to retire at, your expected longevity and your anticipated expenses.

Click here to read about 8 expenses that may drain your retirement savings.

Fall Is In The Air 

A benefit to living in Upstate New York is we get to see all 4 seasons thrive and now it is officially Fall in Saratoga Springs! You can find fun Fall activities like pumpkin or apple picking, brewery tastings and haunted hayrides.

Siena College is hosting the Walk to End Alzheimer’s on Saturday, October 21st starting at 11am. The Walk to End Alzheimer's will also be in Queensbury on Saturday, October 14th at SUNY Adirondack at 10am. More than 6 million Americans are living with Alzheimer's, a disease many of us and our loved ones are affected by. For more information regarding the Walk to End Alzheimer’s, click here.

To browse the local event calendar for this month, click this link