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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Federal Reserve Chair Jerome H. Powell has indicated that the central bank may not raise interest rates further if the economy and inflation continue to cool as expected.

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Federal Reserve Set to Raise Interest Rates to 22-Year High Following June Pause

The Federal Reserve is expected to raise interest rates by a quarter-percentage point, resuming its efforts to combat inflation after a brief pause in June.

Federal Reserve Signals Mild Recession and More Interest Rate Hikes
Federal Reserve Signals Mild Recession and More Interest Rate Hikes

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.

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Federal Reserve Keeps Interest Rates Unchanged, Temporarily Halting Rate-Hiking Strategy

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American household debt hits a 15-year high of $17 trillion
American household debt hits a 15-year high of $17 trillion

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The Federal Reserve raised the interest rates by a quarter point this week
The Federal Reserve raised the interest rates by a quarter point this week

What does this mean for you?

The Federal Reserve is likely to see rising employment costs as the go-ahead for another interest rate increase
The Federal Reserve is likely to see rising employment costs as the go-ahead for another interest rate increase

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

The Fed promises more rate hikes despite easing inflationary woes
The Fed promises more rate hikes despite easing inflationary woes

Cozied up in Jackson Hole, Wyoming this week, Federal Reserve chair Jerome Powell shared a message with others at its Annual Economic Symposium: interest rates will continue to rise.

The Fed blames the supply chain for historic U.S. inflation
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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.

The Federal Reserve seems unsure about possibility of a recession
The Federal Reserve seems unsure about possibility of a recession

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

Main Street anticipating more Federal Reserve hikes
Main Street anticipating more Federal Reserve hikes

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

Jennifer Joslyn
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