The Federal Reserve reinforced its commitment to continue raising interest rates. Even if this means it will do so slowly. As of Wednesday, the Fed raised interest rates for the seventh time since the beginning of the year, signaling even more hikes to come. Though at the same time, stocks of goods have risen and used car, furniture, and toy prices fell. Putting us in a very interesting place.
While inflation has moderated, prices are still rising enough to be a problem for the central bank. And consumers are still facing higher-than-normal borrowing costs. Mortgage rates, and credit card rates are still high and do not seem to be coming down anytime soon.
While all we are seeing now is described as a “mild recession” all we will see following is a mild recovery. Not giving American much hope for the next few years, especially as this cycle is predicted to stay constant moving into 2024.
