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Thndr Claps » U.S. Claps » Economy 🏢 » Another interest rate hike by the Fed 🤦‍♂️

Another interest rate hike by the Fed 🤦‍♂️

by Omar El Shorafa
September 21, 2022
Claps

The Clap
The Fed increased interest rates for the third consecutive time by 0.75%, to reach 3% – 3.25%.

The Deets
In a bid to curb runaway inflation, the Fed increased interest rates and signaled that more interest rate hikes will take place until inflation is brought down to the 2% level.

High inflation has led to decreased spending and production, which led to a reduction in the growth of the economy. However, there are some signals indicating that spending and production will moderately grow.

Why this Matters
The Fed chairman admitted that a recession is possible if the Fed needs to continue hiking interest rates. 

What Now
Interest rates are expected to keep increasing until inflation slows down. The target is to have inflation back at 2% by 2025.

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