Local Wealth Advisor: Fed rate cut “is not going to help right now”

Posted on March 16, 2020
IPI Wealth Management Financial Advisor Sean Craig said the Federal Reserve rate cut will not provide immediate help. (Photo courtesy: WJBC/File)

By Blake Haas

BLOOMINGTON – To bolster the economy during the COVID-19 pandemic, the Federal Reserve announced Sunday a rate cut, and one local financial advisor says the cut will not help.

The Federal Reserve, led by Chair Jerome Powell, cut rates by a full percentage point to zero. The benchmark rate is now a rage of 0 to 0.25%, down from 1 to 1.25%.

“It’s not going to help, right now, the virus information is going to slash growth with all these restaurants, bars closing,” said IPI Wealth Management advisor Sean Craig. “Today in Vegas, some casinos shut down, there is talk right now of airline shut down, and that is the next big thing.”

Although the interest rate slash will help a business go out and get loans, Craig said the cut would not provide immediate economic relief.

“(The rate cut) is not going to help these economic numbers that are going to come out about the coronavirus and really slow down growth.”

As of Monday morning, the S&P 500 dropped 193 points (7.11%), and the Dow Jones dropped 1,842 points (7.91%).

“The market is reacting today very good, but we did shut down for 15 minutes (due to the drop), but we were down 2,800 points (when the markets opened),” added Craig. “The market is acting very favorable to the shut down that the market did earlier today, and people are starting to come in and do a little buying.”

Blake Haas can be reached at [email protected].

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