ST. LOUIS, MO (KTVI) - The British vote to leave the European Union has shaken financial markets. The big loser is the EU, which now falls in its economic rankings below the United States. So what about your money?
Rick Bagy, president of Central Bank of St. Louis, offers some views. First, he noticed that European travel is cheap! But that also means that American products will be sold for less. Last December, the Federal Reserve increased interest rates and said they expected 4 more hikes in 2016, but Bagy doesn't think they'll increase interest rates.
He recommends not looking at your 401K this morning, and notes the stock market has gained back almost half of what we lost in the first two days! The stock market is going to respond to how well our companies do.
The Brexit has caused financial turmoil, but mainly for Britain.