that higher interest rates could trigger a 20% decline in equity prices based on the present value discount effect. In addition, there would be another 10% negative impact from declining incomes, he said in September.
The Fed has embarked on the most aggressive tightening campaign since the 1980s as it tries to wrestle under control inflation that's still running near a 40-year high. The current benchmark federal funds range of 3.75% to 4% is well into restrictive territory, and the Fed has shown no signs of pausing as inflation remains abnormally high.
FILE - Jerome Powell, chair of the U.S. Federal Reserve, speaks during a news conference in Washington, D.C., on May 4, 2022. Although policymakers indicated a preference for a smaller, 50-basis-point rate hike at their meeting next week, they have also signaled an appetite for a higher peak interest rate that could further restrict economic activity.
When the Fed increases rates again you can bet the economy will crawl. They need to. It's out of control now.
Feds efforts to direct a Soft Landing, without disturbing the markets, will prolong Inflation. Fed Assets peaked in Feb at $9TR. down by 3% now. Rates alone not enough. 3.7% Unemployment, not optimal. Wage pressures are lurking on the horizon. Recession, a proven remedy
Don't forget about Executive Order 14067.
front runners cry like babys
Possible. In 2018 rate hikes were compounded by tariff war and a continuous infusion of Democrat shenanigans intentionally undermining the economy to undermine the GOP/Trump and regain power. Combined it completely doused the economic flame.