NEW HAVEN, Conn. (WTNH) – Tuesday was a difficult day for Wall Street with the DOW falling by nearly 1300 points as part of the worst day since March of 2020.
So, what does it mean? For one it clinches the case for the federal reserve to raise interest rates again, maybe by as much as one full point.
The hope is people will eventually begin to spend less. The demand for goods and services drop caused inflation to fall.
Michael McCabe the owner of a wealth management firm in Glastonbury said the feds waited too to lift interest rates and did not raise them enough.
“I think the market has been very volatile and has responded negatively to what’s going on with inflation. I do think by raising rates three quarters to a full percent will help curb inflation,” said Michael McCabe, owner of McCabe Wealth Management.
He also said a diversified portfolio is the most important aspect of financial planning to not panic and to be patient as he sees the market turning in a positive direction in the near future.