What Next for the Economy?

We can't accurately predict the future because we don't have a crystal ball! This is especially true when dealing with economic issues such as investment, real estate, interest rates, inflationary pressures, government actions, international factors, and so on. What effects do inflation, recession, interest rates, Federal Reserve Bank decisions, and other factors have? How can one hedge his bet in order to reduce unnecessary risks while still getting a good return? There is no simple answer because there are so many variables at play. With that in mind, the purpose of this article is to briefly consider, examine, and review potential factors in order to provide readers with a more complete understanding of the options.

1. Government expenditure increased by trillions as a result of financial hardship and problems, such as shut downs and other effects of the pandemic. Debt must, unfortunately, be addressed at some point.
2. This pattern began after the Tax Reform Act of 2017 was passed, which resulted in the first trillion-dollar deficits.
3. Interest rates: We have been in a period of historically low interest rates for a long time. Because the cost of borrowing is so low, this has resulted in easy money. Individuals and corporations have benefited, at least in the short term, by allowing home buyers to purchase more homes because their monthly mortgage payments are low due to low mortgage rates. Low returns have been paid on corporate and government bonds, as well as banks. It has stifled inflation while also causing a surge in home prices that we haven't seen in recent memory. The Federal Reserve Bank has indicated that it will stop propping up the economy and will raise interest rates three times in 2022. What do you think will happen as a result of that?
4. Attitude and perception: Over the last few years, there appears to have been a public perception, as well as many anxieties, that has had a devastating economic impact.
5. Auto loans, consumer loans, and borrowing: Supply chain issues have had a significant impact on the auto industry. Auto loans and leases will become more expensive as interest rates climb.