The Newest Fed Rate Hike & What It Means For Businesses & Entrepreneurs | Business Coach Val Nichols

Hey, what's up everybody? Val Nichols here. I am here to talk about the Fed increase rate of 0.75% and what that actually means for you as a business person and as someone who is, you know, in the world of online business. If you're in the global market or if you are a local, you are a physical product or service. This is actually the 3rd time in this year that the Fed has announced an increase. And if you don't know what that means, that's okay. I'm going to explain all this to you. For those of you who don't know, my name is Val Nichols. I am a business coach for heart-centered, purpose-driven entrepreneurs just like you, and I cannot wait to share this information with you guys because it's like, what does this actually freaking mean? So usually what this means— why is the Fed increasing the rate for the 3rd time this year? Why is because the Fed is, you know, really trying to fuel the economy. What happens is there's an immediate increase, there's an immediate jump in the subprime rate, the credit rating that banks will give to consumers when they are issuing credit. This could be a long-term home loan, it could be a business loan, it could be the interest rate on your car vehicle, which as we know can really have a ripple effect on different things in our lives. What that means is that it's going to cost more money from you as the consumer to borrow money. So if you're borrowing as a business, if you are purchasing a vehicle with credit, or if you are purchasing a home for credit, it is going to cost more money to borrow the money. And again, this is the 3rd time this year that the Fed has announced that increase. Why does the Fed do this increase or decrease the subprime rate is because usually what they're trying to do is either inflate the economy Or keep the economy going. And so what they're doing right now is actually called a soft blow. I'm going to explain that in a moment, so hold tight. What's at stake when they make these increases or decreases? There's a lot of pressure, right? It's the U.S. economy, it's, um, consumers, it's businesses, it's all of us as a whole. Each and every single one of us will see the effect, whether if you are a business owner, an entrepreneur, If you are shopping at the grocery store, if you are purchasing things at Neiman Marcus, you will see an increase in what you're paying. You will see inflation. We're seeing gas prices rise. We're seeing our credit loans go up. We are seeing the mortgage rate increase like never before. Last I heard, it was about 6 or 7%, which is insane, right? So we're going to start seeing a lot more like subprime loans going on. What is the Fed trying to achieve? Right? Again, they are trying to go with the tides and keep the economy strong right now. Even though there seems to be a shortage everywhere of employees, the U.S. economy is actually somewhat strong right now, meaning that unemployment rates are low. They are lower than they were a couple years ago. And so what the Fed is trying to do with this is they are actually trying to do a soft blow. People who went through the 2008 crash, this really hit a lot of industries such as mortgage lending, real estate agents, and a lot of people ended up getting upside down on their homes and losing their homes and losing a lot of things. I had friends that were literally like movers and shakers and had these beautiful homes and beautiful cars, and then they ended up living off of credit cards and losing their homes. What the Fed is trying to achieve with this is something called a soft landing. And what that means is that they're trying to actually increase the economy, increase inflation, but giving it a softer blow so that we don't have the effect of the recession that we had in 2008, which may seem a little crazy, but really, like, this is what they're trying to achieve. Whether if you agree with that or not, you know what they're trying to do? Keep the economy strong, leverage the U.S. economy increased the US dollar. And since housing prices and lumber shortages have caused huge increases all across the board, and then we have raising gas prices, and then we have the fact that there's a shortage of workers to actually, you know, do the work, what's happened is we've almost like— it created this bubble that what goes up must come down. What they're trying to achieve is the soft blow, meaning that again, they want to keep the economy strong. They want to increase inflation. It is now at 8.6% for the year of 2022. So what they're doing is they're increasing the inflation so that we have a softer blow and we don't experience the devastation of the crash that we experienced in 2008-2009. We haven't seen increased interest rates this high since about 1994. Now, we've been living in pretty abundant times as far as, you know, borrowing cash, whether if you're a business, if you're buying a home, if you're financing a car, we have been having several years of free money. Interest rates were down really low. And honestly, even the custom 6 or 7% that we're seeing right now, depending upon your credit score, even at that 6 or 7% for like a home loan, It's a lot lower than it was back in like the early '80s. So just know that, you know, yes, we will see inflation. Yes, we're going to see increased prices, which we're already seeing. You know, as an entrepreneur, as someone who is, you know, looking at my profit margin, I'm already seeing the increase of hiring employees. I have a coffee company and the increased amount of the beans to import the beans to have the product. I'm seeing an increase all across the board. What are your thoughts on this? Is there anything I missed? Is there anything you want to add? And, you know, feel free to ask questions. If you have any questions, let me know. Weigh in. What does this mean for you? And what are you experiencing during this announcement of the increase? I'd love to hear from you, especially if you're a business owner, an entrepreneur. You are my people. I love you. I'm sending you so much love. If you're really feeling this increase of costs and the rising pressure of being an entrepreneur, my invitation for you is to join me actually in the middle right now of my 2022 Grow Your Business and Reset Challenge. I had no idea that this was going to be coming up during this challenge, but I don't believe in coincidences. I don't know about you, but I truly believe this is the perfect time to reset your business. To grow your business and you know what, create your own economy. Because I can stand here before you fully confident and assured and tell you that even though the rates are going to fluctuate, they're going to go up and down. You know, the economy is going to go up and down. If you are an entrepreneur, you can absolutely create your own economy so that you don't have to be in that fear, in that worry. I'm a true believer of the fact that, you know, whatever's going to happen will happen. Right? It's going to come, it's going to go. We can worry, we can spin our wheels worrying or spin our wheels trying to figure out a solution. But the thing is, at the end of the day, if we are able to build our own economy through the strategy, through the structure of our business, we can go to sleep at night, rest assured, put our head on the pillow at night that everything is going to be okay. So weigh in. I'd love to hear what your thoughts are. What's coming up for you? And if you would like to join my 2022 Grow and Reset Your Business Challenge, I would love for you to come. I'll put the link here in the description. So join me. It is going to be so fun. We are talking all about this stuff. We are talking all about how to build your business, how to do it so that you can grow, increase, have that profitability, and you don't have to worry. Whether or not the feds increase the rate, you know, because I mean, at the end of the day, we're good, right? At the end of the day, we're taken care of. We have our needs are met, and we can have abundantly more than we ever thought was possible. I love you guys so much. Hope you have a great day. I'll see you soon. Bye.