Economic update highlights "abnormal" inflation
Feb. 10—LIMA — Superior Credit Union is reestablishing an old tradition. The Superior Economic Update has returned after the cancellations due to the pandemic.
John Smith of ALM First shared an economic forecast looking at some of the key indicators used to make economic forecasts including gross national product, the unemployment rate, the inflation rate and interest rates and national debt.
Smith said, "We have pretty much a changing environment at this point in time. Interest rates are moving up. Many people haven't seen this over the past decade."
Economic forecasts are not always accurate and can be influenced by unexpected events. Additionally, different organizations and experts may have different opinions about the future direction of the economy, so it's always a good idea to consider multiple forecasts and take them with a grain of salt.
"What we are experiencing right now is not abnormal. We've seen higher rates before and the economy has done reasonably well through that," Smith said.
"What's different this time is that inflation has reared its ugly head again. The Federal Reserve is trying to combat that. So higher inflation impacts people no matter what earnings level. Sometimes it impacts people who are lower wage earners most because their disposable income just isn't enough to offset the higher prices."
Discussing the national debt, Smith said that each taxpayer's share of the debt according to the national debt clock is $246,867.
Economic forecasts can be useful for businesses, governments and individuals to make informed decisions about investments, spending and saving. However, it's always a good idea to approach economic forecasts with caution and consider a wide range of factors before making any major decisions.
Reach Dean Brown at 567-242-0409
