It’s been a wild week for the economy.
Monday saw a more than 20 percent drop in the Dow and the S&P 500. By mid-week, the Federal Reserve announced one of the largest hikes in interest rates in decades.
Local financial advisor Howie Pentony says the fed increased interest rates by three quarters of a percentage point in order to curb inflation, but it’s going to have an impact on consumers.
“Along with the inflation, along with the supply chain issues, rising interest rates generally are not good,” Pentony said. “Our economy has been working so far in the United States, but generally speaking I would look for a little bit of slowing.”
Pentony added that housing mortgage rates are well above five percent right now.
On Thursday, the Dow closed below 30,000 points, dropping 2.4 percent. The S&P 500 also dropped 123 points.
