Economics expert provides tips for El Pasoans after Fed interest rate hike

EL PASO, Texas-- A professor of economics from UTEP said simulations of regional economy conducted in campus indicate there's a 70% probability El Paso will face a recession at the end of this year.

UTEP professor Tom Fullerton said high inflation rates were caused by problems around the global economy which generated disruptions in the flow of supplies into the United States. Hence, there is more money available with fewer goods.

"There's also a lot of money circulating in the U.S. economy because of all the precautionary measures the federal government took to protect households and businesses from the unexpected Covid-19 downturn in the economy." Fullerton explained.

Interest rates are reaching record-high numbers in almost 40 years. Fullerton expects inflation rates to remain above five percent for at least another 18 months. Five percent being more than double what it was prior 2021.

Inflation growing rapidly translates into households spending more money to acquire certain goods and services and their budgets may not go as far as it would have a year ago.

Fullerton said it is important to recognize that while prices have gone up, the U.S. economy is relatively in good shape in the present as well as in El Paso and Las Cruces, adding that unemployment numbers are low and incomes have grown.

Fullerton also shared tips for border region households to save money during these times.

• Use automobiles only when necessary as gas prices soar.
• As prices for meat have also spiked they should turn to other meal options; chicken, pork, fish, vegetables.
• If possible, consider crossing to Juarez to get products that are short in supply or too expensive on this side of the border.
• Medicines can also be more affordable across the border.