These aren’t your grandpa’s high interest rates

Make Me Smart

Marketplace

News, Business

4.6 • 5.4K Ratings

🗓️ 14 September 2022

⏱️ 29 minutes

🔗️ Recording | iTunes | RSS

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Summary

High(er) interest rates are here and probably not going anywhere anytime soon. Today’s inflation numbers almost guarantee that the Federal Reserve will raise rates again by another three-quarters of a percentage point.

But it’s been such a long time since the U.S. economy has been in a high-interest-rate environment that many of us are wondering exactly how to navigate our personal finances.

On the show today, we’ll discuss what high interest rates mean for consumers and why they aren’t translating into higher savings rates. As always, consult your own personal finance expert before making financial decisions.

Later, we’ll talk about the latest inflation report and whether child poverty really is getting better. We’ll do the numbers.

Then, stick around to hear what artificial intelligence has to do with French fries, and a philosopher drops some wisdom on us.

Here’s everything we talked about today:

“How to take advantage of rising interest rates” from CNN
“Money and millennials: The cost of living in 2022 vs. 1972” from Marketplace
Pandemic Aid Reduced Poverty Again in 2021, Census Bureau Reports from The New York Times
“The official U.S. poverty rate is based on a hopelessly out-of-date metric” from The New York Times
“US inflation still stubbornly high despite August slowdown” from The Associated Press

Join us tomorrow for Whaddya Wanna Know Wednesday. And if you’ve got a question about money, business or the economy, leave us a voice mail at 508-U-B-SMART or email us at [email protected].

Transcript

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0:00.0	All right, so Jake, I think we are ready to rock and roll.
0:04.0	Hello everyone, I'm Kimberly Adams.
0:13.0	Welcome to Make Me Smart, where none of us is as smart as all of us.
0:17.0	Hey there, I'm Amy Scott in Forkai Rizdal today.
0:21.0	It's Tuesday, which means it's time for our weekly deep dive into a single topic.
0:26.0	And today we're going to do a little personal finance.
0:29.0	The Federal Reserve has signaled they will raise rates again, probably by another three quarters of a percentage point.
0:36.0	Today's inflation numbers pretty much guarantee that.
0:39.0	So we're going to look at how this affects the average consumer.
0:44.0	Yeah, and if you want, we actually want to know what this is going to mean for your personal finances.
0:51.0	The downsides, the upsides, and what you can do about it. So here to make a smart on all of this is Lynette Calphani Cox,
0:59.0	a personal finance expert, an author of the book Zero Det, the ultimate guide to financial freedom.
1:06.0	Welcome to the program, Lynette.
1:08.0	Hi there, thank you for having me. It's a great time for this conversation.
1:11.0	Lots of folks are concerned about these topics.
1:14.0	I know, and I guess I should ask you to sort of set out some definitions first,
1:19.0	because we've been talking a lot on marketplace and lots of news organizations about high inflation.
1:25.0	But we want to talk about here is the high interest rate environment.
1:30.0	Can you talk about how those two things are different and how they intertwine?
1:34.0	Sure. So they are in fact related.
1:39.0	But for most folks who are going to think about inflation first, let's talk about that.
1:46.0	It's really obviously an environment where prices are rising, and it can affect everything from the amount of rent or your mortgage you're paying,
	...

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