Caution: Higher Interests Rates Ahead!

Congress has never met a spending bill it has not liked, correction loved!  Below are highlights from the recent budget bill passed by Congress. It was hailed as being bipartisan and was clearly approved by both Republicans and Democrats. This aggressive spending and resultant explosion of debt, is one of the contributing factors for the rise in interest rates. The Federal Reserve may be more aggressive in raising rates to tamp down inflation. This uncertainty over rates has been a contributing factor to the increase in market volatility.
If rates rise, we will all suffer by having to pay more for mortgages, auto loans, and college funding, etc.    Of course, we will have to pay higher taxes for the Federal deficit. 
Here are some of the details:
•       Spending caps are raised by about $300 billion over two years.
•       Nondefense spending would increase by $63 billion in this fiscal year, which ends in September. Next year it would increase by $68 billion.  Military spending would be raised by $80 billion in the current fiscal year and by $85 billion next year.
•       The debt limit would be suspended through March 2019, according to White House press secretary Sarah Huckabee Sanders. That would put another vote well past this year’s midterm elections.
•       $20 billion to “augment” infrastructure programs including surface transportation and rural water and wastewater systems, according to Schumer.
•       $6 billion to fight the opioid epidemic.
•       $4 billion for rebuilding veterans’ hospitals.
•       $4 billion for college affordability programs aimed at helping police officers, teachers and firefighters.
•       $90 billion in disaster aid for Texas, Florida and Puerto Rico.

As always, please contact us with questions and concerns. 

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this article will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio.  Moreover, you should not assume that any information or any corresponding discussions serves as the receipt of, or as a substitute for, personalized investment advice from Griffin Financial Advisors, LLC. The opinions expressed are those of Griffin Financial Advisors, LLC and are subject to change at any time due to the changes in market or economic conditions.

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