Federal Reserve Signals Mild Recession and More Interest Rate Hikes

Leases & LoansMoney MattersInflation
Written By Jennifer Joslyn

The minutes from the Federal Reserve's June meeting indicate that a mild recession is expected, accompanied by further interest rate hikes to combat inflation. While some members of the Federal Open Market Committee expressed the need to slow the pace of rate hikes, others favored maintaining a restrictive stance on monetary policy. The Fed staff also forecasted a credit tightening and moderate recovery in the economy.

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What does this mean for you?

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According to the U.S. Labor Department, the employment cost index grew by 1.2% from July through September.

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The Fed promises more rate hikes despite easing inflationary woes

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The Federal Reserve Bank of New York has compiled a data analysis that has placed much of the inflation blame squarely on the supply chain.

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The strong economy benefits from raising wages and consumers continuing to spend. In a way, this inflationary period is testing the limits.

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Higher interest rates mean consumers will pay more to borrow money from institutions.

Jennifer Joslyn
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