Inflation: The Future of Interest Rates

Inflation is rising and interest rates are too. How high will rates climb? And how long will they stay elevated? We talk to Dr. Lindsey Piegza, Chief Economist at Stifel to find out.

Show Notes

Welcome back to In Good Companies! This season, we’re exploring the forces shaping your business, inside and out—and to kick off Season Two, we’ve got a double whammy: inflation and interest rates.

During COVID, the Federal Reserve cut its target range for the Federal Funds Rate to 0.00% to 0.25%. But now, in 2022, inflation has hit a 40-year high and interest rates are climbing again. In six short months, the Federal Funds Rate target range has risen steeply, from a range of 0% to 0.25%  to a range of 3.00% to 3.25%. High interest rates can have a substantial effect on businesses and consumers alike. So, how high will rates climb? And how long will they stay elevated?  

One of the people best positioned to answer those questions is Dr. Lindsey Piegza, Chief Economist at Stifel: she’s spent her career translating the economy to a broad audience. Together, we’ll examine the relationship between interest and inflation, decode the Fed’s monetary policy and explore why this inflation might be particularly stubborn.

As always, we’ll dig into what this means for you and your business: what indicators to pay attention to, how to adapt to a high-interest environment and why you should be especially cautious when inflation recedes.

So join us! We’ve got your best interest at heart.

Highlights:

• Why our economic situation is deceptive (3:40)
• Federal Funds Rate deep dive (6:20)
• The relationship between inflation and interest rates (8:22)
• Rate hikes in 2022 (9:09)
• How the Fed uses interest rates as a communication tool (10:51)
• What will drive the Fed’s decision-making (12:29)
• The lag of monetary policy (14:09)
• What happens if inflation doesn’t subside (16:13)
• The effects of a high-interest environment on small business (19:05)
• How inflation and interest affect consumer behavior (21:32)
• Why caution and adaptability will be key (22:50)
• Markets are cyclical (25:01)

Links:

• Cadence Bank Website
• Cadence Bank Twitter
• Cadence Bank LinkedIn
• Dr. Lindsey Piegza LinkedIn
• Stifel Institutional Website
• Stifel Financial LinkedIn
• Federal Reserve –Summary of Economic Projections, September 2022
• Gallup – Inflation Causing Hardship for Consumers

Feedback:

If you have questions about the show or topics you'd like discussed in future episodes, email our producers, [e-mail] or [e-mail].

What is In Good Companies?

Starting and running a business or managing one isn’t for the faint of heart. You’re balancing internal and external forces in a continually changing landscape. This is where Cadence Bank’s In Good Companies comes in. We share our wealth of knowledge–and insights from noted industry experts–to guide you through the forces shaping business today.

It’s hosted by Patrick Pacheco, an EVP and President of Cadence Asset Management and Trust, who has more than 25 years’ experience and is a self-proclaimed lifelong learner. He leads discussions with business owners and subject matter experts about how they’re tackling business challenges like:

● What are ways to grow my business without growing my debt?
● How can I turn my data into meaningful information?
● Why is company culture more important than ever?

It’s information you need, in one place, in under 30 minutes. More than 250,000 listeners tune in each week. Shouldn’t you?

ABOUT OUR HOST
With more than 25 years’ experience in wealth management for business clients and a penchant for hosting, Patrick Pacheco is an EVP and president of Cadence Asset Management and Trust, and presenter of the bank’s In Good Companies podcast, now in its fourth season.
His background features years of legal practice and multiple degrees, including a Master of Taxation from University of Houston, a law degree from Southern Methodist University, and both a Master of Business Administration and Bachelor of Science in Economics from University of Texas at Arlington.
Pacheco describes himself as a lifelong learner and someone who loves asking questions–probably the ones you’re thinking about too. He’s especially excited about season four because of the diversity of topics and guests who will not only share their wealth of knowledge, but listeners will also get tips and tricks they can use in their own businesses, careers and professional lives.