Interest Rate Increases Aren’t Worth Anxiety
Nationally Syndicated Host Dan Celia: People Are Spoiled by Historically Low Rates, But Keeping Them Stagnant Could Lead to Hyperinflation
PHILADELPHIA—The markets took a few tumbles last week, and financial analysts pointed to several factors. Among them was chatter that interest rates were on their way up.
With the market now in correction territory, nationally syndicated host and biblical investing authority Dan Celia says that interest rates have been at historically low levels, and the Federal Reserve will have to raise them, perhaps twice this year. But that shouldn’t cause anxiety that affects the markets.
“For nearly a decade, people have been spoiled with low interest rates,” Celia said. “We are getting into normalization now. The Fed will have to raise them eventually to get everything in check. If they aren’t raised, we could end up with hyperinflation if they rise too fast we could end up suppressing economic growth, balance the key word.”
Celia, who calls himself “strong dollar”—“A strong dollar is a good thing in any country,” he says—adds that the new Fed Chairman Jerome Powell, who began his post Feb. 5, is not a fan of high interest rates, so his moves to raise them is questionable.
Celia leads Financial Issues Stewardship Ministries (FISM, www.financialissues.org). His program, “Financial Issues,” airs from 9 a.m. to noon EST Monday through Friday on about 640 radio stations and several television networks, including NRBTV. Watch live here.
Read more about Celia, FISM and “Financial Issues” here or visit the FISM web site, its Facebook page, on YouTube at Financial Issues with Dan Celia or on Twitter @financialissues; download the FISM app here.