INDIANAPOLIS (WISH) — Inflation rates are surging, hitting the highest they’ve been in over four decades and leaving government officials and Americans concerned about a potential recession.
Andrew Butters, assistant professor in the department of business and economics at IU Kelley School of Business, tells News 8 while there are steps being taken to avoid the economic hardships that may lie ahead, it’s essential Hoosiers have a financial plan in place if a recession does hit.
“Interest rates are going up and will continue to go up, and what that’s going to do is increase the cost of any borrowing that you’re doing,” Butters said, “whether it’s making a decision about purchasing a home or a car.
“At times when interest rates are really low, the cost of borrowing is low. Now, it’s going to be a more sizable amount of your monthly paycheck or your disposable income. So, it’s a very…