Page 12 - April 2023 Issue.indd

CPI dropped from 6.4% in February to
10794 Greensboro Road, Denton, MD 6% in March. Shouldn’t we be optimistic
www.THEBRENTONREALTYGROUP.COM that a .4% drop in month-to-month
inflation on top of declines in the
410-829-3430 previous five months will prompt the
Fed to stop raising rates soon? Shouldn’t
we be optimistic that our living expenses
DO YOU KNOW will be going down?
SOME BUNNY primary goal of the Federal Reserve,
Getting inflation under control is a

and raising interest rates is the primary
way they have been able to accomplish
that. Remember the 19% rates the Paul
Volker Fed pushed rates to in 1980 to
WITH REAL ESTATE NEEDS? combat inflation that hit 14.6%? The
Fed funds rate averaged 10% during the
decade of the 80’s and mortgage rates
,·0 $// remained in double digits for most of
that 10-year period.
The Federal Reserve seeks to manage
($56 monetary policy to a 2.5% inflation
rate. The next six months will tell a lot

about where the economy and interest
KATHLEEN BRENTON, BROKERKER rates will trend. The consensus among

KATHLEENBRENTON@GMAIL.COMCOM those more adept and expert than me
410-479-4663 is the Fed will continue to increase Fed
funds, but will measure their steps. Th e
recent collapse of Silicon Valley Bank
and stop increasing rates and even less
motivation to lower rates. and Signature Bank could force the Fed
to change or moderate their actions
The month to month infl ation number against inflation. By the time you read

Perfect Touch is more significant to me as a consumer this we could know a lot more about

because it is easier for me to relate the
how the Federal Reserve will chart these
cost of something today to the cost of uncertain waters.
what I paid for that item last month.
One thing is for certain though. As long
Hair Design Eggs are a good example because we
as there are three available jobs for every
all eat eggs and buy them more oft en.
unemployed person, 2.5% infl ation will
Telling me eggs are 40% higher than they
take longer and longer to achieve. As
were a year ago is not as meaningful as
long as businesses are struggling to staff
1143 Shore Hwy. Denton
410-479-2833 telling me the price of eggs has gone up their businesses, regardless of what kind
or down 10% in the last month.
of business it may be, wages will remain
Ann Draper &
Lisa Young (Murray), Stylist Year to year CPI numbers better indicate high to attract talent, which for most
Over 30 years combined experience a longer term trend in inflation while the businesses is the biggest expense.

month to month CPI number indicates

real out of pocket cost and can be easily The next six months are going to be very
validated by most consumers. Consider interesting in our economy.
Appointments Appreciated the number of times you have said, “Oh
Walk-Ins Welcome Mr. Rowe is Vice President/Lending for
my, have you seen the price of eggs.” Bay Capital Mortgage Corp. with offi ces
Tuesday - Friday 9 a.m. - 7 p.m. “Jeez, gas went up 10 cents yesterday”. in Easton and Annapolis. He has lived in
Wed., Closed; Saturday 9-noon Nobody says, “Wow, remember when Caroline for his entire life and supports
gas was $5 per gallon a year ago? How the county by volunteering in a variety of
wonderful that we are only paying $4 a ways. He currently lives near Greensboro
gallon today?” with his wife Jeanne and daughter Kelsey.

12