CT expert issues warning about current economy
With stocks tumbling and the government moving to make a cut in the key interest rate Tuesday, a Connecticut financial planner is warning residents not to make impulsive decisions with their money.The Dow Jones suffered a free fall after Tuesday?s opening bell. The Federal Reserve cut a key interest rate to 3.5 percent amid a global stock sell-off. The rate is what banks charge each other on overnight loans.
The cut is aimed to restore confidence in the economy and put more money in the hands of consumers. Certified financial planner Eric Tashlein of Milford says these financial moves affect retirees the most.
?You have to assess your situation, try not to get panicky, try not to read every article in the paper because those will drive you to make some poor decisions,? says Tashlein.
The Federal Reserve interest cut is the biggest one-day rate move since 1991, and the Fed?s biggest rate cut in total since 1984.
The hope is that the rate cut, combined with President Bush?s stimulus package, will help avoid a recession and boost the economy.