Just as it looked like we were all ready for the “Grand Reopening” as Covid numbers improved, we’re hit with higher inflation, exploding oil and commodity prices, worrisome geopolitical tensions, and now the Fed hiking interest rates 25 basis points. We all knew an increase in interest rates was on the horizon, but raising rates earlier than we originally expected has added to an already volatile market. During the mid-March Federal Open Market Committee meeting, 2022 inflation projections were revised up from 2.7% to 4.3%, and 2022 GDP growth projections were revised down from 4% to 2.8%
The “Wall of Worry” now looks a bit different than at the beginning of the year – with brand new additions. I warned you it would never stop. 😊
The Fed raising rates, in and of itself, is not a cause for major concern. We haven’t experienced an increase since 2018 and it’s been widely expected that the Fed was going to have to raise them eventually. It’s one of the few, powerful tools that the Fed has at its disposal to try and combat inflation and help the economy through our next recession. We want higher interest rates to slow inflation. Still it’s a delicate balancing act between raising them just enough to curb inflation, but not done in a way that drastically slows the growth of our economy. Getting the timing and frequency of interest rate increases just right is particularly tricky. Fed officials anticipate at least another 150 basis points in rate hikes by the end of the year.
The market has been and will continue to watch and react to the timing and frequency of the anticipated interest rate hikes. If you’d like to learn more, I’m sharing helpful video commentary from Scott Brown, Economist, Raymond James, Fed raises interest rates for first time since 2018. Below is also a helpful infographic explaining monetary policy.
All of these factors combined are now leading to uncertainty regarding our economic growth, which has not been as much of a worry for the last 18 months. Although the Russia-Ukraine conflict has been a destabilizing factor in global markets, the Fed has repeatedly asserted that the U.S. economy and labor market are strong. We’ll be watching it closely and, of course, really hoping that the situation in Ukraine improves very soon.
In light of the ongoing conflict in Ukraine, I came across a list of charities in a recent article, and I thought it was worth sharing. We (Potomac Financial Group or Raymond James & Associates) are not associated with any of these organizations. I am simply sharing a list of links that I came across for anyone who might be interested in helping.
List of Ukraine Charities:
Ukraine Focused
- Boctok SOS
- Fund for Ukraine
- Help children of war in Ukraine
- Hope for Ukraine
- Kid of UA
- Nova Ukraine
- Razom for Ukraine
- Serhiy Zhadan Charitable Foundation
- SOS Ukraine
- Support Ukraine Now
- Ukraine Child Rescue
- Ukraine Now
- United Help Ukraine
- United Ukrainian American Relief Committee
- WhoWillHelp Ukraine
Large, Globally-Focused but Working in Ukraine
- Afya Foundation
- American Red Cross
- Canadian Red Cross
- Care
- Direct Relief
- Doctors Without Borders
- Global Giving
- International Committee of the Red Cross
- International Medical Corps
- ISRA Aid
- MOAS
- Polish Red Cross
- Red Cross
- Red Cross Red Crescent
- Save the Children
- UN Crisis Relief
- UN Refugess
- UNICEF USA
Governmental
- Ministry of Defence of Ukraine
- National Bank of Ukraine – Armed Forces
- National Bank of Ukraine – Humanitarian Aid
Faith Based
- Alliance for Ukraine
- Catholic Relief Services
- Christian Mission Ebenezer
- Christian Response
- HIAS in Ukraine
- International Fellowship of Christians and Jews
- Jewish Colorado
- Jewish Family & Comunity Services
- Jewish Federation of Greater Seattle
- Jewish Federation of Greater Ukraine
- Jews of Ukraine
- Lutheran Disaster Response
- Moishe House
- Samaritan’s Purse
- SEND International
- Survivor Mitzvah
- The Friends of Israel Gospel Ministry
- Tikva Odessa
- UJA Federation of New York
- World Union Launchs Ukraine Crisis Fund
Small
- Aukok
- Come Back Alive
- CU Foundation
- Donio
- Help Ukraine Win
- Just Giving
- Libereco – Partnership for Human Rights
- Polish Origins
- Press Partners
- Revived Soldiers Ukraine
- Save Life
- Siepomaga – War in Ukraine
- Slovak Americans
- Spirit of America
- Ukraine Legal Aid
Social Media
- Life-saving medical supplies to Ukraine front lines
- Help freedom fighters in Ukraine with medical aid save lives
- Humanitarian Aid to Ukraine
- Katya’s fundraiser for Sunflower of Peace
- Serhiy Prytula
- KIDSOFUAORGG
- Kids of Ukraine
- Nicholas A. Christakis Thread On Charities to Help Ukraine
- Human Rights Foundation
Take care,
Todd M. Wike, CFP®
CERTIFIED FINANCIAL PLANNER™
Managing Partner, Potomac Financial Group
2022 RJFS Chairman’s Council Member*
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