The Federal Reserve is taking control of the economy and attempting to squander inflation, but could it cause a recession?
The consumer price index has risen by almost 8% since February of 2021.
Just one week ago the federal interest rate was bumped up for the first time in three years.
Prices increasing should slow down, but borrowing money will become more expensive.
COLA: When will the COLA increase for 2023 be announced?
The Federal Reserve is hoping to bring the rate of inflation down to 2%.
The next meeting will be between May 3 and May 4, to determine another interest rate increase.
If the Federal Reserve increase rates too quickly, it may lead to a recession.
Inflation is affecting snacks too- these favorites are experiencing ‘shrinkflation’
What happens to Americans with interest and inflation if a recession hits?
When the peak of the pandemic was happening, the economy suffered a recession.
Businesses closed and job loss what at an all time high.
When there are less jobs, there’s less money and less spending.
Right now the opposite is happening and there is a higher demand for product, driving up prices.
If demand is lowered businesses could suffer, leading to job loss all over again.
The Federal Reserve needs to find a balance to fix inflation without causing another recession.
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