Families are flush with cash, so higher interest rates have done less to deter them from spending than if they had been funding their purchases with credit-card debt, said James St. Aubin, chief financial officer at Sierra Mutual Funds.
“That slows down the impact of raising the cost of money,” Mr. St. Aubin said. “It could take 12 to 18 months for the full effect of a given Fed rate increase to hit the economy.”
The thoughts and opinions expressed in the article are solely those of the person speaking as of 3/9/2023, and not necessarily those of Sierra and are provided for informational purposes only. Any opinion or estimate contained in this article is made on a general basis and is not to be relied upon by the reader as advice. The reader must make his/her own assessment of the relevance, accuracy, and adequacy of the information contained in this article, and make such independent investigations as he/she may consider necessary or appropriate for the purpose of such assessment.
0141-SI00XLAP 03212023
