Wall Street embraces possible rate hikes into restrictive territory

InflationMoney MattersLeases & Loans
Written By Jennifer Joslyn

The Federal Reserve has been raising interest rates incrementally to help fight off inflation, but it doesn’t seem to be working. The current plan is to keep the plan on track until March 2023 when it is set to reach 4.26%. The seriousness of the inflation problem cannot be understated, according to the chief economic advisor at Brean Capital, John Ryding.

Ryding has also stated he could see the Fed hiking rates up as high as 5%. Some are concerned that this tightening will have the opposite effect and cause a recession, while others say that a recession is already taking place.

Read more from CNBC ▶

You also might like...
Federal Reserve Nears 'Soft Landing' with Immaculate Disinflation, But Challenges Persist
Federal Reserve Nears 'Soft Landing' with Immaculate Disinflation, But Challenges Persist

The Federal Reserve is on the verge of achieving a rare "soft landing" by curbing inflation without causing a severe recession.

US Inflation Reaches Lowest Level Since 2021, Offering Relief to Households Amidst Easing Prices
US Inflation Reaches Lowest Level Since 2021, Offering Relief to Households Amidst Easing Prices

Inflation in the United States has reached its lowest point since early 2021, providing some relief to households after two years of high prices.

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.

Federal Reserve Chair Powell Reaffirms Expectation of Further Rate Hikes Amid Persistent High Inflation
Federal Reserve Chair Powell Reaffirms Expectation of Further Rate Hikes Amid Persistent High Inflation

Federal Reserve Chair Jerome Powell reaffirmed the likelihood of raising interest rates at least once more this year due to persistent inflation in the service sector and a tight job market.

Expectations of Further Rate Hikes in 2023
Expectations of Further Rate Hikes in 2023

Federal Reserve officials expect to raise interest rates further this year to combat excessive inflation in the United States, according to Chair Jerome Powell.

Fed Research Identifies Main Culprit Behind US Inflation Spike
Fed Research Identifies Main Culprit Behind US Inflation Spike

The breakdown of global supply chains during the pandemic has been widely recognized as a major driver of inflation.

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

The Federal Reserve announced a pause in its rate-hiking campaign, acknowledging the need to wait for the effects to permeate the economy but indicating that more rate hikes are likely this year.

Federal Reserve's Closely Tracked Inflation Measure Rises in April
Federal Reserve's Closely Tracked Inflation Measure Rises in April

A key measure of US prices, closely monitored by the Federal Reserve, showed an increase in April, indicating persistent inflationary pressures in the economy.

Federal Reserve Raises Rates by 0.25 Points and Hints at Possible Conclusion to Rate Hiking
Federal Reserve Raises Rates by 0.25 Points and Hints at Possible Conclusion to Rate Hiking

The Federal Reserve has approved its 10th interest rate increase, raising its benchmark borrowing rate by 0.25 percentage point to 5%-5.25%, the highest since August 2007.

Will the US Economy survive the Fed’s interest rate hikes?
Will the US Economy survive the Fed’s interest rate hikes?

The US economy is currently facing the question of whether it will experience a crash or a gentle return to Earth.

The Fed - and inflation - just won’t quit
The Fed - and inflation - just won’t quit

The elevated inflation rate has remained steadfast and stubborn, despite a multitude of efforts by the central bank to stifle it over the past year.

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

Spiraling towards levels only seen during the 2008 financial crisis, US household debt has increased by $320 billion in the last 3 months of 2022.

The Fed warns that inflation is a battle Americans will face for quite some time
The Fed warns that inflation is a battle Americans will face for quite some time

Federal Reserve Chair Jerome Powell claims that the strong job market has made The Federal Reserve’s efforts to stifle inflation difficult, even after many rounds of interest rate hikes.

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?

Dear Federal Reserve… please be gentle!
Dear Federal Reserve… please be gentle!

The job market has been cooling off and inflation seems to be on the decline, signaling that the Federal Reserve may be less inclined to raise interest rates again and again, mirroring the increases of 2022.

Inflation rears its ugly head, again
Inflation rears its ugly head, again

The U.S. Federal Reserve’s latest interest rate hikes have good intentions… but the immediate effect feels like the opposite.

An “early holiday rush” was almost nonexistent this year
An “early holiday rush” was almost nonexistent this year

In a 2022 shopping survey conducted by Supply Chain Brain of 3,138 U.S. adults, 50% said that they did not begin holiday shopping until November.

The Federal Reserve raised rates again, but there may be some solace soon
The Federal Reserve raised rates again, but there may be some solace soon

fter hiking its benchmark interest rate by three-quarters of a point for the fourth time in a row, The Federal Reserve suggested that the next time this happens, it will be more deliberate in its rate hikes instead of taking “the standard” amount.

Great news: the national diesel average has dropped 2.4 cents
Great news: the national diesel average has dropped 2.4 cents

While this is the second week in a row with a very incremental change, many say it’s still better than going up.

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.

UPS is upping its rate to match its number one competitor, FedEx
UPS is upping its rate to match its number one competitor, FedEx

UPS Ground, Air, and International services will launch the rate hike beginning on December 27th.

Potential recession to land next summer, says former treasury secretary
Potential recession to land next summer, says former treasury secretary

While predictions are that the recession will be “mild”, Former US Treasury Secretary Larry Summers is echoing what many have been stating: a recession is coming, and the public should be prepared.

Diesel prices soar after 5 weeks of declines
Diesel prices soar after 5 weeks of declines

All good things must come to an end, it seems.

Even used cars are making potential buyers think twice, now
Even used cars are making potential buyers think twice, now

Used cars are officially unaffordable for most Americans. Interest rate bumps have forced a number of potential car shoppers to reconsider buying, even what has previously been the most ‘reasonable’ option.

Is the U.S. in a recession? Depends who you ask
Is the U.S. in a recession? Depends who you ask

Unemployment remains at a 50-year low, but the signs of an impending recession are growing clearer by the day.

FedEx leadership warns of plummeting global shipping demand
FedEx leadership warns of plummeting global shipping demand

They might be right. FedEx’s sales forecast was full of cost-cutting measures after Q1 profits showed poor performance.

‘Shrinkflation’ might be useful… if you look hard enough
‘Shrinkflation’ might be useful… if you look hard enough

‘Shrinkflation’ is a fun little term to describe what we suspected was true… yes, that container of ice cream did get smaller.

Wall Street embraces possible rate hikes into restrictive territory
Wall Street embraces possible rate hikes into restrictive territory

The Federal Reserve has been raising interest rates incrementally to help fight off inflation, but it doesn’t seem to be working.

Beef processing plant joins forces with retailer Walmart
Beef processing plant joins forces with retailer Walmart

The price of meat has gone through the roof, and Walmart is hoping to ease that inflationary pain of its customers.

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.

Jennifer Joslyn
Previous

Baltic Dry Index jumps after 52-week low in August
Next

Experts slam shipping’s “outdated Jones Act” after near railroad strike highlights holes in the supply chain