Federal Reserve Board Chair Janet Yellen believes our economy is strong. She believes that good jobs are being created and that we don’t want to get too strong because in her opinion, if we do then she has to make interest rates higher- so the economy can cool down. She wants the Fed to start this process, of raising interest rates, as early as September.

Yellen, and the Board, have said their number one target would be inflation. According to Yellen, if we go over two percent inflation” then we are going too fast.

Well, firstly, I come from the economic 1980s, a time when interest rates were 20 percent and inflation, at times, close to 10 percent. So, in just knowing that, historical economic statistics tells me that their measure of inflation might actually be too low.

But more important, the U.S. Department of Labor Statistics just came out with their July 2017 reading of inflation, and the Producer Price Index was at -0.1 percent. This means ” inflation,” year over year, is now at 1.9 percent.

While of course we know that health care, for example, went up, 0.3 percent in July, energy and food went down, -0.03 and -0.6 percent respectively.

So inflation is tame, with room, still, actually to grow, without overheating. Then what should the Fed do?

Well, just like the stock market went up and they called it the “Trump Bump”? Well, if Yellen lowers interest rates, you’ll call your 401k rising “The Yellen Bump”.

Your congressmember is home on vacation. Give them a call and give them a piece of your mind: tell them to tell Yellen to lower interest rates!

Anthony Rivieccio is the founder and CEO of The Financial Advisors Group, celebrating its 20th year as a fee-only financial planning firm specializing in solving financial problems. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News, and The Bronx Chronicle. For financial assistance or a FREE 2017 Income Tax Analysis. Anthony can be reached at 347.575.5045.