The Federal Reserve just increased interest rates again, making it the 4th consecutive rate hike this year. With inflation rising across the board domestically in The United States, Fed Chairman Jerome Powell released the Federal Reserve’s latest monetary policy change. The FOMC board’s stance comes to no surprise as things as the latest GDP report came out showing yet another decline in consumer strength.
Oddly enough, both the Federal Reserve and The President’s Administration have claimed that the United States isn’t in a recession although by the textbook term it would show that we are. During the FOMC meeting claims were made that America is in a “Economic Decline” but not a recession. As rates continue to rise, and inflation has still yet to see any slowing down — Institutions and top private and public sector companies are weary of the economy’s future.
The Fed calls its monetary stance on rate hikes as its way to lower inflation, which on paper makes sense. On the other hand, as rates increase in record fashion an eminent recession is more likely to occur. Comments have been made that the Fed’s stance is a part of their “soft landing” approach. We shall see into the near future just how soft of a landing the Fed is able to deliver for the US economy.
This post is based on the opinion of writers at Real Estate Today