Butowsky to Moneynews: Brace for Rising Inflation After Obama Victory

With the re-election of President Barack Obama, investors need to prepare for inflation that will result from the fiscal and monetary stimulus programs rolled out under the administration’s first term, said Ed Butowsky, managing partner at Chapwood Capital Investment Management.

Under the president’s first term, fiscal stimulus programs such as the American Recovery and Reinvestment Act and the president’s Affordable Care Act, otherwise known as Obamacare, ramped up spending and laid the groundwork for higher taxes.

The Federal Reserve, meanwhile, slashed interest rates to near zero and pumped the economy with trillions of dollars in fresh liquidity via a monetary policy tool known as quantitative easing, under which the U.S. central bank buys bonds from banks and floods the economy with excess money supply to encourage investing and hiring.

Sooner or later, inflation will follow suit and rock-bottom interest rates will rise, so investors need to prepare today, Butowsky told Newsmax TV in an exclusive interview.

Watch our exclusive video. Story continues below.

Full article and video

The Bow Tie agrees