>>> FUNDING PROVIDED BY -- 110 YEARS, HAS BEEN FOCUSED ON THE ADVANCEMENT AND SUCCESS OF OUR MEMBERS.

REPRESENTING ALL INDUSTRIES, WORKING TOGETHER TO HELP BUILD A PROSPEROUS NEW JERSEY THROUGH SUPPORT, NETWORKING AND BE BENEFITS.

SCHOOL OF BUSINESS, A GAME CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY OR BUSINESS ANTICS AND DATA SCIENCE.

STEP WAS FROM THE EXCHANGE PLACE IN JERSEY CITY AND MINUTES FROM WALL STREET.

LOCAL 102, LIGHTING THE PATH, LEADING THE WAY, VISIT.

>> THIS WEEK ON "NJ BUSINESS BEAT", THE STATE OF NEW JERSEY'S ECONOMIC HEALTH.

WHAT THE NEW RE KNEW REPORT REVEALS ABOUT OUR FINANCIAL SUCCESS THIS FISCAL YEAR.

PLUS HOW GOVERNOR MURPHY IS WORKING TO LOWER PRESCRIPTION DRUG COSTS.

>>> AND RISING INFLATION IN FOCUS, HIGHLIGHTING ITS IMPACT ON EVERYDAY CRISIS, CRITICAL CONSUMER LOANS AND EVEN YOUR RETIREMENT.

THAT'S STRAIGHT AHEAD ON "NJ BUSINESS BEAT."

>> THIS IS "NJ BUSINESS BEAT."

>> HELLO, THANKS FOR JOINING US ON "NJ BUSINESS BEAT."

IF YOU'RE WATCHING ON YOUTUBE, MAKE SURE YOU SUBSCRIBE TO OUR NJ SPOTLIGHT YOUTUBE CHANNEL TO GET ALERTED WHEN WE POST NEW EPISODES AND CLIPS.

NEW JERSEY'S FINANCIAL HEALTH IS IMPROVING BASED ON THE LATEST LOOK AT STATE REVENUES.

THE STATE TREASURY DEPARTMENT REPORTED HIGHER REVENUE COLLECTIONS IN JANUARY FOR THE FISCAL YEAR, TOTAL WERE UP $4 BILLION OR NEARLY 22% ABOVE THE SAME 7 MONTHS IN THE LAST FISCAL YEAR.

IN JANUARY SALES TAX COLLECTIONS, THAT'S THE LARGEST REVENUE SOURCE INCREASED BY $187 MILLION.

THE JANUARY REPORT REFLECTS ACTIVITY IN DECEMBER, SO THOSE NUMBERS SHOW A STRONG HOLIDAY SHOPPING SEASON.

THE STATE'S OTHER REVENUE SOURCES, THE INCOME TAX AND CORPORATE BUSINESS TAX ALSO SHOW GAINS.

THESE REVENUE NUMBERS WILL HELP THE HAD MURPHY ADMINISTRATION PREPARE THE STATE'S NEW BUDGET FOR NEXT FISCAL YEAR WHICH STARTS JULY 1st.

TYPICALLY THE GOVERNOR DELIVERS A MESSAGE IN FEBRUARY, BUT THIS PAST WEEK, THE LEGISLATURE WANT ED TO GIVE HIM TWO ADDITIONAL WEEKS TO PREPARE OVER THE OBJECTIONS OF REPUBLICAN LA MAKERS.

MINORITY BUSINESS OWNERS IN PARTICULAR OFTEN HAVE TROUBLE GETTING LOANS AND OTHER FINANCING TO GROW THEIR BUSINESSES.

THE LATEST EFFORT TO CHANGE THAT COMES FROM PRUDENTIAL FINANCIAL JP MOHR FWAN CHASE AND THE ROCKEFELLER FOUNDATION, WHICH THIS WEEK LAUNCHED THE ENTREPRENEURS OF COLOR FUND IN NEWARK.

THE FUND IS LAUNCH ING WITH $1.

MILLION IN INVESTMENT.

WORKING WITH LOCAL PARTNERS IN THE CITY, THE FUND WILL CONNECT SMALL BUSINESS OWNERS WITH CAPITAL AND TECHNICAL ASSISTANCE.

I SAT DOWN WITH THE EXECUTIVE DIRECTOR OF GLOBAL PHILANTHROPY AT JPMORGAN ALONG WITH THE FOUNDER OF THE NEWARK BASE BUSINESS FLO'S TASTY TREATS.

THANK YOU FOR YOUR TIME.

TELL US ABOUT THE ENTREPRENEURS OF COLOR FUND.

WHAT IS THE FUND DO AND WHAT ARE THE HOPES?

>> SO ENTREPRENEURS OF COLOR FUND IS ACTUALLY A NATIONAL INITIATIVE THAT'S MANAGED AND SUPPORTED BY JPMORGAN CHASE.

WE ARE NOW LAUNCHING AN ENTREPRENEURS OF COLOR FUND IN NEWARK IT'S GOING TO BE THE NINTH CITY THAT HAS AN ENTREPRENEURS OF CLR FUND.

AND THE AMAZING THING ABOUT THIS FUND IS THAT IT TARGETS COMMUNITIES OF COLOR SO FILL IN THE GAPS IN THE ACCESS TO CAPITAL THAT THEY HAVE EXPERIENCED THERE.

>> SO WHY WAS NEWARK CHOSEN TO EXPAND THE FUND?

>> IF YOU THINK ABOUT THE CITY OF NEWARK, THERE ARE 100,000 SMALL BUSINESSES IN THE CITY OF NU -- I'M, I'M SORRY.

22,000 SMALL BUSINESSES IN NEWARK AND 70% OF THEM ARE OWNED BY ENTREPRENEURS OF COLOR.

SO IF WE HAVE SUCH A POPULATION OF ENTREPRENEURS OF COLOR, BUT THEY ARE UNABLE TO ACCESS CAPITAL IN TRADITIONAL WAYS, SOMETHING NEEDS TO BE DONE.

AND SO IN COLLABORATION WITH OUR PARTNERS, PRUDENTIAL FINANCIAL AND THE ROCKEFELLER FOUNDATION, WE THOUGHT IT WAS AN OPPORTUNITY TO BRING THE ENTREPRENEURS COLOR FUND TO NEWARK.

>> TELL ME ABOUT YOUR OWN SMALL BUSINESS.

DID YOU STRUGGLE GETTING IT OFF THE GROUND?

HAS BEEN FINDING FINANCIAL RESOURCES AND CAPITAL BEEN A STRUGGLE?

>> YEAH, SO FIRST OF ALL, I'LL TELL YOU A LITTLE BIT ABOUT FLOWS.

WE'RE A PACKAGING COMPANY.

OUR MISSION IS TO BRING VISIBILITY TO AFRICAN CUISINE AND WE'RE DOING THAT THROUGH THE SIMPLE JOY.

I STARTED THE BUSINESS IN 2017, AND THE FIRST FEW YEARS WAS REALLY A STRUGGLE.

GETTING ACCESS TO CAPITAL.

ONE, BECAUSE WE WERE FAIRLY NEW, AND IF YOU WERE TO GO TO A TRADITIONAL BANK, THEY NEEDS RECORD OF YOU BEING IN BUSINESS AND HAVING THE SUCCESSFUL BUSINESS, SO THAT WAS A BARRIER.

AND IT CONTINUES TO BE.

BECAUSE AS A SMALL BUSINESS OWNER AND FOR ME IN PARTICULAR, MY BUSINESS IS BEGINNING TO TAKE OFF.

AND I'M GETTING MORE REQUESTS FOR PRODUCT, BUT I CANNOT PRODUCE BECAUSE I DON'T HAVE THE FUNDS.

I DON'T HAVE THE WORKING CAPITAL.

IF YOU GET THE RESOURCES YOU NEED, WHAT DO YOU HAVE IN MIND IN TERMS OF EXPANSION?

>> IF I HAVE WORKING CAPITAL, I CAN GO TO MORE BUSINESSES AND SAY, HEY, WOULD YOU LIKE TO SELL MY PRODUCT.

SO I WOULD USE THAT MONEY FOR WORKING CAPITAL.

I WOULD ALSO INVEST IN MARKETING BECAUSE IF PEOPLE DON'T KNOW WHAT YOU'RE OFFERING, HOW CAN THEY BUY IT.

SO DEFINITELY INVEST IN MARKETING AND LASTLY, GET STAFF I AL BEGINNING TO NEED HELP AS DEMAND GROWS AND IT WILL BE A PLEASURE TO EMPLOY FOLKS IN NEWARK.

>> IT'S BEEN SO GREAT TO HEAR ABOUT THE FUND AND TO TALK TO FLORENCE.

THANK YOU FOR YOUR TIME.

BEST OF LUCK.

>> THANK YOU.

>> IF YOU OWN PROPERTY IN NEW JERSEY, YOU KNOW TAXES GO UP EVERY YEAR.

WELL, IT COULD BE WORSE.

NJ SPOTLIGHT REVIEWED PROPERTY TAX DATA GOING BACK A DECADE TO MEASURE THE IMPACT FROM THE ANNUAL 2% CAP ON PROPERTY TAX INCREASES.

THAT CAP WAS PUT IN PLACE BACK IN 2011, AND BUDGET AND FINANCE WRITER SAYS IT HAS BEEN EFFECTIVE.

YEARLY PROPERTY TAX INCREASES WERE HIGHER BEFORE THE CAP TOOK EFFECT.

>> BEFORE WE HAD THIS CAP IN PLACE, WE SAW YEAR OVER YEAR INCREASES OF OVER 5% ON AVERAGE FOR A DECADE.

EVER SINCE THOSE INCREASES HAVE BEEN LESS THAN 2%.

AND SO THE TURNING POINT APPEARS TO BE WHEN THIS CAPS WAS ENACTED AND SOME OTHER POLICY CHANGES THAT WERE PUT IN PLACE AROUND THE SAME TIME.

>> IN OTHER CITIES AND THE MANY NEW JERSEY COMMUNITIES THAT HAVE A DOWNTOWN AREA, THERE'S ALWAYS A FOCUS ON HOW TO DRUM UP BUSINESS AND KEEP MOM AND POP SHOPS TLOOIING.

THE GROUP KNOWN AS DOWNTOWN NEW JERSEY RECENTLY HELD ITS ANNUAL CONFERENCE TO TALK ABOUT ECONOMIC DEVELOPMENT.

ACCORDING TO EXECUTIVE DIRECTOR, COVID-19 REENFORCED THE VALUE OF DOWNTOWNS.

THEY JUST NEED TO BE REIMAGINED.

>> THE DOWNTOWN GROUP OF WHICH YOU ARE EXECUTIVE DIRECTOR RECENTLY HELD A CONFERENCE TO TALK ABOUT HOW NEW JERSEY'S DOWNTOWNS ARE DOING.

LET'S START THERE FIRST.

HOW WOULD YOU DESCRIBE THE STATE OF OUR DOWNTOWNS?

>> IT DEPENDS.

THE TOWNS THAT HAVE BEEN PROACTIVE IN RECOVERY, THE TOWN S THAT ALREADY HAVE SOME TYPE OF MANAGEMENT ENTITY OR GROUP OR ORGANIZATION THAT WAS WORKING WITH THEIR SMALL BUSINESSES, I THINK THEY FAIRED BETTER THROUGH THE PANDEMIC.

BECAUSE THERE WAS THAT HANDS-ON HELP.

THOSE WERE THE TOWNS THAT YOU SAW TAKING OVER PARKING SPOTS FOR OUTDOOR EATING AND REALLY HOLTING THE HANTDS OF THE PEOPL WHEN THEY WERE GOING FOR CARES ACT FUNDING.

THOSE HAVE SEEN GOOD RESULTS.

>> REIMAGINE, THAT WAS THE THEME.

SO HOW ARE DOWNTOWNS DOING THAT RIGHT NOW?

>> YOU KICKED OFF TALKING ABOUT DIVERSITY AND INCLUSION, WHICH WE THINK IS REALLY IMPORTANT TO MAINTAINING VIBRANT DOWNTOWNS.

IN PARTICULAR, NOT JUST WITH THE BUSINESSES THAT THEY ATTRACT AND ENTERTAIN, BUT ALSO THE CUSTOMER BASE.

SO IF YOU'RE MORE DIVERSE IN YOUR BUSINESSES, YOU'RE GOING TO BE MORE DIVERSE IN YOUR CUSTOMER BASE.

AND WE TALKED ABOUT BEING INTENTIONALLY INCLUSIVE.

SO YOU SEE THAT GREAT SUCCESSFUL BLACK-OWNED BUSINESS IN ONE COMMUNITY.

WHY DON'T YOU ACTIVELY PURSUE THEM TO BE IN YOUR COMMUNITY AS WELL?

OPEN THEIR SUCECOND SHOP.

WHY ARE WE NOT PROVIDING SOME TYPE OF INCENTIVES TO MAKE THAT HAPPEN.

IF THR THRIVING IN ONE PLACE, THERE'S NO REASON THEY CAN'T THRIVE IN ANOTHER PLACE.

THEN WE MOVE ON TO TECHNOLOGY.

SO WE TALKED ABOUT HOW PARTICULARLY DURING THE PANDEMIC, DOWNTOWNS WERE REALLY HELPING THE SMALL BUSINESSES BRIDGE THAT DIGITAL DIVIDE.

>> A LOT OF INTERESTING TOPICS.

WROULD YOU SAY THEY ARE FEELING OPTIMIST I IC ABOUT THE REST OFE YEAR?

>> WE DID A POST SESSION SURVEY VAI AND GOT GREAT COMMENTS.

THIS IS ALL GREAT ADVICE.

WE'RE GOING TO IMPLEMENT IT.

IF THEY DO THAT, WE'RE GOING TO SEE SOME POSITIVE RESULTS IN TOWN TOWNS ACROSS NEW JERSEY.

>> I HOPE YOU'RE RIGHT.

IT'S BEEN GREAT CATCHING UP WITH YOU.

THANK YOU SO MUCH.

>> THANK YOU.

>>> GOVERNOR MURPHY IS SEEKING TO LOWER THE COST OF PRESCRIPTION DRUGS IN NEW JERSEY.

HE'S SUPPORTING SEVERAL BILLS INTRODUCED IN THE STATE HOUSE TO REIGN IN COSTS, INCLOUDING ONE THAT WOULD PLACE A CAP ON OUT OF POCKET COSTS FOR EMERGENCY MEDICATION, SUCH AS INSULIN, ASTHMA INHALERS AND EPIPENS.

THE EFFORTS ARE SUPPORTED BY THE AARP.

THE DIRECTOR OF ADVOCACY FOR THE AARP IN NEW JERSEY.

>> THIS IS A HUGE ISSUE FOR EVERYONE REGARDLESS OF AGE, REGARDLESS OF PARTY, REGARDLESS OF INCOME.

EVERYONE IS SUFFERING UNDER THE WEIGHT OF TERRIBLY HIGH PRESCRIPTION DRUG COSTS.

WHAT WE WOULD LIKE TO SEE IS ACTION DIRECT ED AT LOWERING PRICES FOR EVERYONE BY ENSURING THAT WE HAVE A SYSTEM IN PLACE THAT PREVENTS MANUFACTURERS FROM SETTING PRICES IN THIS MARKET.

>> PRESCRIPTION DRUGS AREN'T THE ONLY THINGS INCREASING IN PRICE.

FOOD, GAS, HOUSE ING, EVERYTHIN COSTS MORE.

YOU HAVE READ THE HEADLINES INFLATION HAS RAISED TO 40-YEAR HIGHS.

POP ARE STRUGGLING TO KEEP UP.

WE'RE PUTTING INFLATION IN FOCUS THIS WEEK LOOKING A AT WHAT'S TO BLAME FOR INFLATION, WHETHER IT CAN BE CONTAINED AND HOW IT'S IMPACTING YOUR FINANCES.

CONSUMER PRICES ARE SURGING.

ACCORDING TO THE FEDERAL GOVERNMENT, THE CONSUMER PRICE INDEX ROSE 5.1% OVER THE PAST 12 MONTHS IN THE NEW JERSEY, NEW YORK METRO AREA.

THE CONSUMER PRICE INDEX MEASURES THE COST OF ALL SORTS OF CONSUMER GOODS.

IN NEW JERSEY, FOOD COSTS HAVE RISEN 7.5%.

UTILITY PRICES, UP CLOSE TO 19%.

THE COST FOR GASOLINE PRODUCTS EVEN HIGHER UP MORE THAN 39%.

A MORE MODEST PRICE INCREASE FOR SHELTER UP 1.5%.

NATIONALLY, THE CONSUMER PRICE INDEX FOR JANUARY ROSE 7.5% COMPARED WITH THE YEAR AGO MEAN ING INFLATION IS AT A 40-YEAR HIGH.

WITH PRICES SPIKING, THE FEDERAL RESERVE HAS SIGNALLED IT WILL START RAISING INTEREST RATES IN AN ATTEMPT TO EASE INFLATION.

BUT ONCE THAT HAPPENS, YOU'LL BE PAYING MORE FOR ALL SORTS OF LOANS.

WE TALKED ABOUT WHAT YOU SHOULD PREPARE FOR WITH GREG McBRIBE, THE CHIEF FINANCIAL ANALYST AT BANK RATE, A CONSUMER FINANCIAL SERVICES COMPANY.

GREG, IT'S BEEN QUITE SOME TIME BEFORE CONSUMERS WERE REALLY LIVING IN AN ENVIRONMENT WHERE INTEREST RATES ARE RISING.

WE KNOW THE FEDERAL RESERVE APPEARS INTENT TO CONTINUE TO RAISE RATES OVER THE MONTHS AHEAD.

LET'S TALK ABOUT THE IMPACT ON COOP CONSUMERS.

FIRST OF ALL, WHAT WILL WE SEE GO UP WHEN IT COMES TO CONSUMER LOANS?

>> RATES ARE ALREADY ON THE RISE.

IF THEY ARE UP JUST SINCE THANKSGIVING IN ANTICIPATION OF HIGHER RATES TO COME.

ONCE THE FEDERAL RESERVE ACTUALLY GETS INTO THE PROCESS OF RAISING INTEREST RATES, YOU'RE GOING TO SEE OTHER CONSUMER LOAN PRODUCTS FOLLOW SHORTLY THEREAFTER, SPECIFICALLY CREDIT CARDS, HOME EQUITY LINES OF CREDIT, PRIVATE STUDENT LOANS, YOU'LL SEE THOSE GOING UP.

AUTO LOANS ARE FIXED RATES.

SO A COUPLE THINGS IF YOU ALREADY HAVE A CAR LOAN, YOU DON'T HAVE ANYTHING TO WORRY ABOUT.

IF YOU'RE IN THE MARKET FOR A CAR, THE GOOD NEWS IS INTENSE COMPETITION ON THE LENDING SIDE HAS KEPT A LID ON THOSE RATES IN THE PAST CYCLES.

>> I'M CURIOUS ABOUT THAT IMPACT FROM COMPETITION.

IS THERE ANY CHANCE THAT COMPETITION WILL HELP KEEP A LID ON RATES FOR MORTGAGES OR A HOME EQUITY LOAN OR NO?

>> WELL, HOME EQUITY LOANS, ONE THING TO KEEP AN EYE ON.

A LOT OF LENDERS HAVE INTRODUCTORY RATES THAT PAY BE GOOD FOR THE FIRST SIX MONTHS, NINE MONTHS.

THAT CAN BE A REAL HELP, PARTICULARLY IF YOU'RE DOING A HOME IMPROVEMENT PROJECT WHERE YOU'RE INCURRING THE MONEY IN STAGES OR EXPECTING A WIND FALL WHERE YOU'RE ABLE TO GET THAT PAID OFF.

YOU CAN REALLY TAKE ADVANTAGE OF THAT INTRODUCTORY PERIOD.

SO SHOP AROUND FOR THOSE.

AND ON MORTGAGES, THERE'S A LOT OF COMPETITION.

AND SO THAT WILL MAYBE TIGHTEN THE DIFFERENCE BETWEEN SAY MORTGAGE RATES AND SOSMT BENCHMARK RATES, BUT THE WIND IS BLOWING IN ONE DIRECTION.

AND THAT IS TOWARD HIGHER RATES.

>> HOW DO CONSUMERS EVEN PREPARE FOR THIS RISING INTEREST RATE ENVIRONMENT?

>> THE GOOD NEWS IS THAT THE IMPACT I THINK IS -- A LOT ARE GOING TO START OUT SMALL.

IT'S NOT REALLY GOING TO BE NOTICEABLE.

BUT THERE'S A CUMULATIVE EFFECT.

SO MORTGAGE RATES, YES, WE HAVE SEEN A BIG JUMP SO FAR.

THAT MAKES ALL THE DIFFERENCE IN THE WORLD IF YOU PROCRASTINATE ON REFINANCING OR IN THE MARKET TO BUY A HOME THIS YEAR.

BUT OTHER PRODUCTS, CREDIT CARD RATES, HOME EQUITY LINES, THOSE VARIABLE RATES, THEY WILL GO UP, BUT THEY WILL MARCH UP ALONGSIDE THE FED.

THEY ARE COMING FROM RELATIVELY LOW LEVELS WITH THE EXCEPTION OF CREDIT CARDS.

SO THE DIFFERENCE, THE IMPACT.

YOU'RE REALLY NOT GOING TO NOTICE IT IN TERMS OF MONTHLY PAYMENTS, BUT I MENTIONED THE COUPLE WILLTIVE EFFECT.

THAT'S THE THING TO KEEP AN EYE ON.

THE FEDERAL RESERVE IS LIKELY TO RAISE INTEREST RATES QUITE A FEW TIMES.

NOT JUST THIS YEAR, BUT PROBABLY NEXT YEAR AS WELL.

YOU HAVE TO HAVE AN EYE DOWN THE ROAD HOW MUCH INTEREST RATES MIGHT INCREASE OVER THE NEXT TWO YEARS.

IF YOU HAVE THE ABILITY TO REFINANCE AT A VARIABLE RATE, LOCK IN FIXED RATES, THAT'S A TRADE TO MAKE AT THIS POINT.

>> I GUESS WE SHOULD FOCUS MAYBE ON THE UPSIDE.

THERE'S SOME UPSIDE TO HIGHER INTEREST RATES INCLUDING PEOPLE THAT JUST HAVE MONEY PARKED IN THE BANK.

>> IT'S GOING TO TAKE A LOT OF INTEREST RATE HIKES BEFORE YOUR INTEREST EARNINGS START TO MOVE UP.

IT'S GOING TO TAKE A LOT OF HIKES TO BRING INFLATION DOWN TO 2%.

THE DIFFERENCE IS THIS IS THE YEAR WHERE THAT GAP STARTS TO CLOSE.

THAT'S MORE THAN WE CAN SAY FOR THE LAST TWO AND A HALF YEARS, WHERE SAVERS AND FIXED INCOME INVEST TORTS HAVE SEEN INTEREST RATES COME DOWN AND INFLATION GO WAY UP.

THIS IS THE START OF ARE REVERSING SOME OF THAT.

>> GREG, IT'S BEEN A PLEASURE SPEAKING WITH YOU.

THANK YOU FOR YOUR INSIGHT.

>> FOR MORE ON INFLATION AND WHETHER THE FEDERAL RESERVE CAN CONTAIN IT, WE TURN TO A PROFESSOR OF ECONOMICS A AT STOCKTON UNIVERSITY.

HOW DOES RISING INFLATION HURT OUR ECONOMY?

WHAT ARE THE RISKS?

>> TODAY EVERY HOUR THAT YOU WORK, YOU EFFECTIVELY INDUCT BEING A ABLE TO OBVIOUSLY BUY LESS.

SO WE SAY THAT HOUSE HOLDS REAL PURCHASING POWER HAS BEEN ERODED.

I THINK THE REAL RISK GOING FORWARD IS WHETHER OR NOT THE INFLATION RATE CONTINUES TO ACCELERATE.

>> IN NEW JERSEY, OF COURSE, IT'S EXPENSIVE TO LIVE.

AND WE HAVE MORE INCOME RESIDENTS THAT MIGHT BE A ADVERSELY IMPACTED.

ARE THEY PARTICULARLY VULNERABLE WHEN WE SEE THIS SITUATION?

>> HOUSEHOLDS TEND TO BE MORE ADVE ADVERSELY AAFECTED.

BUT IT'S ALSO TRUE THAT TO SOME EXTENT WHAT THE AVERAGE HOUSEHOLD ENDS UP BUYING OVER THE COURSE OF THE MONTH PLAYS A BIG PART IN HOW AFFECTED THEY WILL BE.

>> ARE THERE ANY BRIGHT SIDES TO INFLATION?

WE ARE SEEING SOME WAGE INK INCREASES, BUT IT'S NOT EXACTLY KEEPING UP WITH THE PRICE INCREASES.

>> IT IS TRUE THAT WAGES HAVE RISEN.

I THINK SOMEWHERE AROUND 5% OR SO OVER THE COURSE OF THE LAST YEAR.

AND AGAIN TO SOME EXTENT, THAT A WORKER HAS RECEIVED THAT KIND OF WAGE BUMP OVER THE COURSE OF THE LAST YEAR, THEY HAPPEN TO BE IN A HOUSEHOLD THAT DOESN'T OWN A CAR, DOESN'T RELY HEAVILY ON TRANSPORTATION SERVICES, THAN PERHAPS THAT HAS TRANSLATED TO A REAL GAIN FOR SOME.

>> SO NOW THE FEDERAL RESERVE HAS TELEGRAPHED THAT IT TENDS TO RAISE INTEREST RATES A COUPLE TIME THIS IS YEAR A AS A WAY TO CURTAIL INFLIGS.

BUT THE FEDERAL RESERVE CAN BE CRITICIZED FOR SOMETIMES MOVING TOO LATE.

IS THIS ONE OF THOSE CASES?

>> FROM THE FED'S PERSPECTIVE, THEY WERE STILL LARGELY KIND OF GRAPPLE ING WITH THEIR DUAL MANDATE, AS IT'S OFTEN TIMES REFERRED TO.

ON ONE HAND, THEY ARE INTERESTED IN SUPPORTING EMPLOYMENT AND THE ECONOMY, BUT ON THE OTHER HAND, THE SECOND PIECE IS PRICE STABILITY.

SO AT THAT TIME EARLY LAST FALL, WE WERE STILL DOWN SOMETHING LIKE 8 MILLION JOBS RELATIVE TO FEBRUARY 2020.

SO TO SOME EXTENT, I THINK THEY WERE KIND OF INFLATION WAS ON THE WHORIZON.

THEY WERE REALLY STILL IN KIND OF SUPPORTING THE ECONOMY MODE.

>> ANY PROTECTIONS WHETHER INFLATIONS STARTS TO COOL?

>> I THINK WE CAN PROBABLY EXPECT RATES TO REMAIN RELATIVELY ELEVATED OVER THE COMING YEAR.

I THINK THE BIG QUESTION IS KIND OF THE WILD CARD.

IT GAS PRICES, WHICH HAVE JUMPED 50% OVER THE COURSE OF THE LAST YEAR OR SO.

I DO THINK AS THE PENT UP SAVINGS, HOUSEHOLD SAVINGS AND FISCAL STIMULUS BEGIN TO FADE, THAT SHOULD BEGIN TO TAPER DEMAND A LITTLE BIT.

THE FED'S ACTIONS ON THE MONETARY SIDE ARE PUSHING UP INTEREST RATES AND WILL WILL BEGIN TO TAKE SOME HOTNESS OUT OF THE EQUITY IN THE HOUSING MARKETS MOVING FORWARD.

>> GREAT TALKING TO YOU AGAIN.

THANK YOU SO MUCH.

>> THANK YOU.

>>> RISING INFLATION IS THE LATEST ROAD TO BUSINESSES.

A RECENT SURVEY BY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESSES FOUND THAT 22% OF BUSINESS OWNERS REPORTED THAT INFLATION CONTINUES TO BE THEIR SINGLE MOST IMPORTANT BUSINESS PROBLEM.

IT'S ONE REASON WHY THE NFIB SMALL BUSINESS OPTIMISM INDEX DECLINED IN JANUARY.

I SPOKE WITH ILENE KEENE, THE STATE DIRECTOR OF THE NFIB ABOUT THE LATEST CHALLENGES FOR MAIN STREET BUSINESSES.

>> ILENE, THE NFIB RECENTLY CONDUCTED A SURVEY WHERE THE NUMBER ONE BUSINESS CONCERN WAS INFLATION.

WHAT ARE YOU HEARING FROM YOUR MEMBERS?

>> I AM HEARING HERE IN NEW JERSEY THAT IT'S REALLY THE PERFECT STORM.

AND IT REALLY BEGAN WITH COVID.

I KNOW THERE'S SKEPTICISM THAT THAT INFLATION WAS GOING TO OCCUR ANY WAY, BUT IT WAS THE SUPPLY DISRUPTION FOLLOWED BY THE SHORTAGE OF LABOR AND IT CAUSED INFLATION TO ESCALATE.

WHY DID INFLATION ESCALATE?

BECAUSE PRICES HAD TO INCREASE.

>> ARE BUSINESSES WORRIED A ABOUT POTENTIALLY LOSING CUSTOMERS WHO MIGHT START TO GET STICKER SHOCK WITH SOME PRICES?

>> THIS COMBINES WITH THE LABOR SHORTAGE.

YOU GO TO CERTAIN STORES AND PIEGT BE WAITING TOO LONG.

YOU GO TO A RESTAURANT AND LOOK AND SAY, ALL RIGHT, THAT DINNER IS $10 MORE AND THERE'S ONE WAITER OR WAITRESS WAITING ON TEN TABLES.

I'M NOT EVEN GETTING SERVICE I WANT AND MY PRICES ARE GOING UP.

>> I THINK WHAT'S PROBABLY REALLY FRUSTRATING TOO IS THIS IS SO OUT OF CONTROL OF A BUSINESS OWN ER.

THERE'S NOTHING A BUSINESS OWNER CAN DO IN TERMS OF TRYING TO MITIGATE INFLATION.

THEY ARE JUST CAUGHT UP IN IT.

>> NEW JERSEY HAS REARE FUSED TO USE FEDERAL MONEY TO REPLENISH THE UNEMPLOYMENT TRUST OPPORTUNITY.

INTERESTINGLY, JUST LAST WEEK NEW JERSEY DEPARTMENT OF LABOR ANNOUNCED THAT ANYBODY ON UNEMPLOYMENT WHO IS OVERPAID DOESN'T HAVE TO PAY BACK WHAT THEY WERE OVERPAID.

YET, THE BUSINESS OWNER IS STILL GOING TO BE HIT WITH THAT VERY HIGH INCREASE IN THE UNEMPLOYMENT TAX, WHICH GOES INTO EFFECT THIS JULY.

>> AND YOU ARE NOT A ALONE IN PUSHING FOR THIS.

OTHER BUSINESS ORGANIZATIONS EXPRESSED FRUSTRATION THAT NOTHING HAS BEEN DONE ON THAT UNEMPLOYMENT FUND.

DO YOU THINK AS WE AWAIT FEDERAL BUDGETS THAT THERE MIGHT BE SOMETHING IN THERE FOR SMALL BUSINESSES HAD THERE BEEN EFFORTS TO LOBBY THE MURPHY ADMINISTRATION TO SAY MORE HELP IS NEEDED?

>> THIS ISSUE HAS BEEN PRESSED BY A COALITION REPRESENTING DIVERSIFYIED BUSINESSS ACROSS NW JERSEY, INCLUDING NFIB.

IT'S THE PERFECT THING TO OFFER BUSINESSES RIGHT NOW.

>> BEYOND THIS INFLATION ISSUE HAS BEEN A PARTFECT STORM SINCE COVID.

ARE YOU FINDING THAT THERE IS ANYMORE OPTIMISM THAN WHAT WAS FELT EVEN JUST A COUPLE MONTHS AGO?

>> OPTIMISM HAS GONE DOWN AMONGST BUSINESS OWNERS NATIONWIDE.

>> TOUGH TIMES STILL.

THANK YOU FOR SHARING AN UPDATE WITH US.

GOOD TO SEE YOU.

>> GOOD TO SEE YOU.

>>> EARLIER, GREG McBROID TOLD US IT'S GOING TO BE AWHILE BEFORE ACCOUNTS EARN INTEREST, WHICH CAN BE A PROBLEM FOR THOSE IN RETIREMENT.

WE GOT SOME ADVICE FOR SENIORS FROM VICTOR MAHMOUD DOE NA, THE OWNER OF WEALTH ADVISERS.

HE SAYS INVESTORS MAY NEED TO SHIFT SOME FUND OUT OF SAVINGS ACCOUNTS OR CDs WHERE INTEREST RATES ARE LOWER THAN THE RATE OF INFLATION.

>> WHAT IT MEANS FOR PEOPLE IN RETIREMENT IS THAT THEY NEED TO BE THINKING ABOUT WHERE THEIR INVESTMENTS ARE.

IN THE PAST, THEY WOULD HAVE PUT MONEY INTO A BANK BECAUSE THEY WOULD HAVE GOTTEN GREAT INTEREST.

BUT THESE DAYS, THEY ARE NOT FINDING THAT KIND OF THING IN THEIR RETIREMENT PICTURE FROM THE DIFFERENT INVESTMENTS THAT THEY HAVE.

WHAT'S DIFFERENT NOW IS THAT UNLIKE THE TRICKLE DOWN EFFECTS OF HAVING INFLATION IN THE WORKPLACE, WHICH ARE THE DPOODS ARE MORE EXPENSIVE, PEOPLE IN RETIREMENT ARE CREATING THEIR OWN PAYCHECK THEY ARE NOT GOING TO SEE THE SAME KIND OF INCREASE IN THE SPENDING THAT THEY WERE AVAILABLE TO THEM WHEN THEY WERE DRAWN FROM THE RETIREMENT ASSETS PREHIGH INFLATION NUMBERS.

>> AND THIS REMINDER, WITH OR WITHOUT INFLATION, INVESTORS SHOULD STAY DIVERSIFIED.

THAT WRAPS UP OUR SHOW.

JOIN US NEXT WEEK WHEN WE TAKE A CLOSER LOOK INTO THE FUTURE OF ROBOTICS IN NEW JERSEY.

THANK YOU FOR WATCHING "NJ BUSINESS BEAT WP".

ENJOY YOUR WEEKEND.

>> FUNDING FOR "NJ BUSINESS BEAT" FUNDED BY -- REPRESENTING ALL INDUSTRIES, WORKING TOGETHER TO HELP BUILD A MORE PROSPEROUS NEW JERSEY.

NJC SCHOOL OF BUSINESS, A GAME CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY OR BUSINESS ANALYTICS.

STEPS AWAY FROM THE WALL STREET.

LEARN MORE.

PROUDLY SERVING NEW JERSEY'S BUSINESS COMMUNITY SINCE 1900.

LOCAL 102, LIGHT ING THE PATH, LEADING THE WAY.