A short time after I wrote about the Federal Reserve’s ability to wreck one of the best economies in 100 years, President Donald Trump has echoed and repeated my analysis and implied that the Federal Reserve should rethink their old ways.

Fed members typically don't understand working-class issues related to lending, and the nation's central bank usually isn't focused on small business and Main Street.

Here is how the Fed affects the flow of money for working families and small business:

1. Small Business Hit by Fed - Cash flow with small business is reduced. Thus it is harder to make payroll. In essence worker hours or salary will be reduced if the cost of money is increased. Small businesses comprise and make up: 99.7 percent of U.S. employer firms, 64 percent of net new private-sector jobs, 49.2 percent of private-sector employment, 42.9 percent of private-sector payroll, 46 percent of private-sector output, 43 percent of high-tech employment, 98 percent of firms exporting goods, and 33 percent of exporting value.
2. Personal Debt and Families Hit with New Costs - Cost of money affects all credit card holders who borrow, reducing their disposable income. According to LendingTree, Americans are expected to amass a total of $4 trillion in consumer debt by the end of this year.
3. Savings Ability Reduced - Since over 50% of the populous has no savings, they would not benefit from a higher CD rates. Many Americans still dipping into what little savings they have to get by. The ability for those with new jobs to save money is reduced if they owe higher interest on any debt such as mortgage, college loans, credit cards, fuel credit cards.
4. Mortgages - Mortgage rates and refinancing mortgages are more expensive which reduces disposable income and reduces mortgage financings and housing sales. Mortgage interest deductions expand due to higher interest rates reducing taxable income for the US government and state governments. Mortgage refinances as a percentage of total mortgage applications declined to 40.1% last week, its lowest level since September 2008.
5. School Debt - They say that about $2 trillion of the national debt is education loans held by 44 million Americans. Thus, an increase in interest owed, reduces cash flow on main street and consumer investment and spending.

• Honorable Mention - The Reduction of Government Revenues - Cost of running city, state and federal governments skyrocket as the interest on debt blows up. Thus, this reduces government wages, reduces government benefits, and slows government hiring.

These higher interest costs on borrowing and greater interest on debt costs will directly reduce how workers invest in: homes, education, cars, products, technology, and services along with reducing investments in: stocks, funds, and securities with above the line 401(k) dollars.

George Mentz JD MBA CWM Chartered Wealth Manager ® is a licensed attorney and CEO of GAFM ® global education, which is an ISO 29990 Certified professional development company operating in over 50 nations. Mentz is an award winning author and advisory board member to several companies around the world in education, charities, and crypto currency.