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The American economy is historically strong.
However, entrepreneur Jaspreet Singh says theres a risk hiding in plain sight that nobody is talking about.
Singh is host of the The Minority Mindset Show and operator of the popular Minority Mindset YouTube channel.
A serial entrepreneur and licensed attorney, Singh uses his platform to spreadfinancial education.
In a recent YouTubevideo, Singh outlined the glaring risk that he said nobody is talking about.
Also seewhat the Fed rate cuts could mean for your money.
Singh highlighted the following interest rate cuts from recent history.
Each of these rate cuts was done in response to a major economic downturn.
In 2020, it was the COVID-19 pandemic.
In 2008, it was the Great Recession, and in 2001, the bursting of the dot-com bubble.
And that means the Federal Reserve bank has to get more creative to stimulate the economy.
How Does the Fed Stimulate the Economy in a Recession?
We know that recessions happen, Singh said.
Weve seen a recession pretty much every decade for the last century … How will the Federal Reserve bank stimulate then?
Should the Fed choose this path, Singh explained, theres a hidden risk that nobody is talking about.
What Is the Hidden Tax?
However, Singh noted, thats not what has been happening.
Instead, weve been seeing the federal government spend money it doesnt have.
This is whats known as the hidden tax.
So who pays the price?
Who Pays the Hidden Tax?
The answer is … everybody pays the price, Singh said.
When you print money … theres a cost to that.
And that cost is inflation.
Inflation measures the rising costs ofgoods and services.
So the average person ends up getting hurt even more.
What Happens If a Recession Hits?
However, what happens if a recession hits when rates are already low?
We cant control what the Fed does.
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