Expectations of Interest Rate Hike by Fed Heightens Fears of Impending Recession

The Federal Reserve is set to begin crucial new meetings on Tuesday, as it tries to get record inflation under control. While President Joe Biden remains optimistic there will not be a recession, some economists fear the United States is already on the edge of one. NBC’s Tom Costello reports for TODAY. » Subscribe to TODAY: » Watch the latest from TODAY: About: TODAY brings you the latest headlines and expert tips on money, health and parenting. We wake up every morning to give you and your family all you need to start your day. If it matters to you, it matters to us. We are in the people business. Subscribe to our channel for exclusive TODAY archival footage & our original web series. Connect with TODAY Online! Visit TODAY's Website: Find TODAY on Facebook: Follow TODAY on Twitter: Follow TODAY on Instagram: #Interest #Economy #Inflation...(read more)

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The United States economy has been booming for the past few years, with healthy growth rates, low unemployment, and a favorable business environment. However, fears of a recession are rising as the Federal Reserve is expected to raise interest rates soon. The Fed has been slowly raising interest rates over the past few years to prevent the economy from overheating and to keep inflation in check. The current federal funds rate is 2.25–2.50%, which is still historically low but higher than it was a few years ago. The Fed has signaled that it may raise rates two more times this year. However, many economists worry that raising rates too quickly could tip the economy into a recession. Higher interest rates make borrowing more expensive for businesses and consumers, which can slow down spending and investment. It can also make it harder for people to afford mortgages and other loans. Another concern is that the current economic expansion is already one of the longest in history, and many sectors of the economy are showing signs of slowing down. Global trade tensions, geopolitical instability, and a potential slowdown in China could hurt U.S. exports and business confidence. Moreover, the recent yield curve inversion, which occurs when long-term interest rates fall below short-term rates, is a signal of a potential recession in the future. The yield curve has accurately predicted the past seven recessions, causing concern among investors and economists. The Fed will have to balance these concerns with its dual mandate of promoting maximum employment and stable prices. If it raises rates too quickly, it could jeopardize the strong job market and trigger inflation. If it raises rates too slowly, it could allow inflation to rise above its target and create a bubble in the economy. Many investors and business leaders are already starting to react to the possibility of a recession. The stock market has been volatile in recent weeks, with sharp swings up and down. Businesses have been cutting back on capital expenditures and hiring, and consumers have been saving more and spending less. In conclusion, the prospect of rising interest rates and a potential recession is causing anxiety in the business world and among consumers. The Federal Reserve will have to tread carefully to avoid causing a downturn while maintaining its mandate to promote a healthy economy. It is a challenging balancing act that will require careful consideration and sound policy decisions. https://inflationprotection.org/expectations-of-interest-rate-hike-by-fed-heightens-fears-of-impending-recession/?feed_id=90147&_unique_id=64432811171c9 #Inflation #Retirement #GoldIRA #Wealth #Investing #AlRoker #breakingnews #concerts #domesticnews #Entertainment #food #Health #HodaKotb #home #internationalnews #Interviews #Media #money #NatalieMorales #parents #pets #politics #SavannahGutherie #shopping #sports #Style #TODAY #TODAYShow #weather #RecessionNews #AlRoker #breakingnews #concerts #domesticnews #Entertainment #food #Health #HodaKotb #home #internationalnews #Interviews #Media #money #NatalieMorales #parents #pets #politics #SavannahGutherie #shopping #sports #Style #TODAY #TODAYShow #weather