NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Creighton University economist Ernie Goss believes that growth has to slow given all the economic headwinds on the horizon.
"We're looking at growth coming down," Goss said. "I don't see any way around that. Are we moving toward a recession? Not at this point. We're certainly seeing growth slow as interest rates rise, as supply chain disruptions continue to have an effect and other factors out there as well. There's too much uncertainty. Try buying an automobile right now, a new automobile right now, even a used automobile. Prices up dramatically and there's just no availability for automobiles. That's just one little signal."
Goss also is certain the federal reserve is going to increase rates, maybe fairly fast.
"I would expect that by the end of the year, interest rates on the short end will be about another one and a half percent," Goss said. "That will put the prime interest rate up to 5%. I can't imagine it being any lower than that. It could be even higher. The Fed has gotten behind the curve on this. They should have been raising rates last year. They weren't."
This would make getting a mortgage or car loan more expensive, but right now there are such supply problems in both areas that may not be enough to slow price increases.