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We've been waiting all year with bated breath for a potential interest rate cut, but now Federal Reserve governor Michelle Bowman is warning of a potential rate hike instead. The good news is, KTRH Money Man Pat Shinn says things likely aren't that bad yet.
Shinn points out that it's important to note that Michelle Bowman only said a rate hike is possible, and her base case is still that there will be two rate cuts later in the year.
He also noted that when discussing interest rates, looking at what the market prices in is usually a more reliable way to go than relying solely on the opinions of just one or two Federal Reserve governors.
Right now, the chance of an actual rate hike is still very low. For a rate hike to happen, inflation would need to go from its stagnant position to skyrocketing. Shinn thinks the chances of that happening are extremely remote.