Federal Reserve Raises Interest Rates

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Federal Reserve Raises Interest Rates

The Federal Reserve raised interest rates by 0.25% for the 10th time in just over a year, to above 5% for the first time since 2007. However, hinted that this might be the last hike, as recent inflation and hiring is slowing down. The Fed removed a line from their statement that they "anticipated" additional rate increases.
Fed Chair Jerome Powell acknowledged the change, but made it clear that the Fed will do what is necessary to tame inflation. The Fed will monitor the labor market and inflation to try to prevent a recession.
If current trends continue, that could be the last interest rate hike. But Powell said it’s too soon to discuss rate cuts.

Check out the chart. You can see what the fed does to head off a recession--drop rates aggressively. That pops buyer demand. That's why I think we will see rates drop. Right now the fed is raising rates to stave off inflation. It is a cycle.
INFLATION-->RAISE RATES-->RECESSION-->LOWER RATES--> INFLATION-->RAISE RATES-->RECESSION-->LOWER RATES
REPEAT REPEAT REPEAT



Oct 18, 2022 About Me