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The Fed Announces Two Big Changes for 2022

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Interest hikes are coming as inflation soars

Inflation is at a 39-year high and it appears not to be transitory. As a result, last Wednesday the Federal Reserve announced last Wednesday they will reduce their bond purchases twice a fast as previously planned and plans on raising interest rates three times in 2022; all in the effort to stem runaway inflation. The Fed has two mandates: maximum employment, and stable prices meaning moderate and stable inflation.” Keynesian economics argued that the government could tax and spend its way to full employment”, wrote the former president of the Federal Reserve Bank of St. Louis in 2005. If that economic theory sounds familiar it should. Consider our government’s response to the Covid-19 pandemic and the massive increase of our money supply.

We’ve faced the monster of inflation before.

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Editor in Chief: HECMWorld.com
 
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
 
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
 
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.

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  1. Are any lenders actually using SOFR yet?


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