Financial Focus:So who started the inflation?

By Professor Anthony Rivieccio MBA PFA

Well, remember that ” Joe Biden inflated pizza” I mentioned in this column several weeks ago?. Well, now it looks like everyone in Government must have had a slice and a heart attack on the new cheese & sauce- looking at recent Government stats .

Wholesale prices in November jumped 9.6%, the fastest on record in a sign that inflation pressures are becoming more ingrained and broad based. National numbers are hovering at 7% per year.

Congress, has decided to ” postpone a vote” on the” Build back better” bill. The concern now , many Congresspeople say, is that it will cost too much to fund.

The Federal Reserve Board, literally, must of ate a whole pizza pie instead of a slice, as the Chair of the Board announced this week, the potential of 5 interest rate hikes over the next 2 years. That’s right, I said 5! They believe this agressive policy can hold inflation down.

” Economic developments and changes in the outlook warrant this evolution of monetary policy, which will continue to provide appropriate support for the economy,” Chairman Jerome Powell said at his post-meeting news conferencelast week.

My own opinion, as I have said as a life long New Yorker, the 1970s are coming back. You see it in crime, quality of life and now we see it in our inflation. I both, smile and feel bad for people under the age of 45, I know, this is your first introduction to inflation. It’s called the devaluement of your money.

Welcome to indecisive fiscal policy action. In short a government who has been divided to a point that they can not write coherent fiscal economic policy. The result; Joe Biden inherited it: inflation. It’s called prices going up younginks. And it was coming, with or with out COVID.

The bigger question now, what is our Government going to do about it?.

Congress , will stay, divided!. The ” build back better” bill as you just heard got crushed and is an example.

So, by law, The Federal Reserve Board must intervene. Are their suggestions correct? 5 interest rate hikes in 2 years!?.

In our opinion all signs show to a future downward financial market. Over the last few years, we have been very lucky but that time is now up. Too many variables were offsetting. The ” inflation” factor will be the wildcard.

So what should one invest in?. Well, that’s another column for sure, but what I can tell you is this. Our firm created a ” Coronavirus Investment Fund” that for the last 2 years has been great outperforming the market, but there will be some dramatic reshifting in that fund before 2022 begins.

We might actually increase monies ( while shifting assets) in the fund because, as you can see , the NY Omicron rate is going higher than the Market ( more health care anyone?) I’m not a medical doctor but let a financial doctor tell you the bad news: COVID is Increasing while many traditional ( non COVID) companies value are decreasing.

Welcome back inflation! It will only make our other NY problems- bigger! Hello 1970s!!. Under 45 years old, ask Mom or Dad!

Professor Anthony Rivieccio, MBA PFA, is the founder of The Financial Advisors Group, celebrating its 25th year as a full service financial planning & investment firm . Anthony is also owner of Rivieccio Financial Advisors, a virtual only financial advisory firm, opened in 2021.

Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Kiplinger’s Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Co-Op City News, The New York Parrot, The Bronx News, thisisthebronX.info , The Bronx Chronicle & The Parkchester Times. Mr. Rivieccio also pens a financial article called “Money Talk”.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

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For financial assistance, Anthony can be reached at (347) 575-5045.