Episode•November 11, 2022•15 min

Finance Friday Live Replay 11/4 | Ep. 164

Every Friday at 12 PM EST, Tiffany goes live on Facebook, Instagram, YouTube, and Twitter to review the latest financial news so you can stay in the know! In this episode, she goes over what the Federal Reserve is and their recent Federal Funds Rate increase, the potential of more increases, and IRS letters that just went out to 9 million people! Tune in for all these details and more! Connect with Tiffany on Social Media Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
The Federal Reserve raised the Federal Funds Rate by 0.75% (75 basis points) to combat persistent inflation
This marks the third or fourth consecutive 0.75% increase in recent meetings
The Boston Fed president indicated another 0.75% hike may be considered for the next meeting
Current rates (3.75-4%) remain historically low compared to 2007 (5.25%) and 2001 (6.5%)
2
The Fed must balance cooling the economy without triggering recession-level damage
Raising rates too aggressively risks increasing layoffs, reducing new construction, and harming employment numbers
Tiffany notes concern that another 0.75% increase might 'send us over the edge'
Housing market is already cooling with inventory rising as fewer buyers enter the market
3
IRS is mailing letters to 9+ million people about unclaimed stimulus, EITC, and child tax credits
Deadline to claim benefits is November 17th via IRS Free File
Free File is available for incomes $73,000 or less through irs.gov/freefile
Claiming these credits does not affect eligibility for SSI, SNAP, TANF, or WIC benefits
4
Savings account rates are increasing due to Fed rate hikes
Ally Bank customers received emails notifying them of increased savings rates
Higher rates provide better returns for savers but increase borrowing costs

Intro

Tiffany Grant hosts her weekly Finance Friday Live session reviewing current financial news including Federal Reserve rate decisions and IRS stimulus outreach to millions of Americans.
Tiffany Grant is a financial coach and host of the Money Talk with Tiff podcast, providing weekly financial education and market updates across Facebook, Instagram, YouTube, and Twitter.

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– Opening and Federal Reserve Rate Hike

Tiffany introduces the episode and dives into the Federal Reserve's latest 0.75% rate increase aimed at curbing inflation.

The Federal Reserve has increased interest rates yet again this year at 75 basis points... to try to curb inflation.
– Tiffany Grant

She explains the Fed's structure with 12 regional banks and notes the Boston Fed president's comments suggesting another 0.75% hike may be on the table.

– Understanding the Fed's Balancing Act

Tiffany discusses the Fed's challenge of cooling the economy without causing excessive damage to employment and construction.

If they continue to keep raising rates... it could spell disaster.
– Tiffany Grant

She notes current rates remain historically low and references past rates from 2007 (5.25%) and 2001 (6.5%).

– Impact on Housing and Savings

Housing inventory is rising as fewer buyers enter the market, indicating the rate hikes are having the intended cooling effect.

Ally Bank customers received notifications of increased savings rates, benefiting savers amid the rate environment.

– IRS Letters to 9 Million People

The IRS has begun sending letters to over 9 million people potentially eligible for unclaimed stimulus payments, EITC, and child tax credits.

If you get a letter from the IRS, open it... the deadline is November 17th.
– Tiffany Grant

Free File remains open until November 17th for incomes $73,000 or less, and claiming credits won't affect other federal benefits like SSI, SNAP, TANF, or WIC.

– Closing

Tiffany wraps up the episode and invites listeners to submit questions for future episodes or the comments section.

Resources

IRS Free Filetool
Federal Reserve Interest Rate Articlesarticle

Topics

Federal ReserveInterest RatesInflationIRSTax CreditsStimulus PaymentsFree FileHousing MarketSavings RatesPersonal Finance