Fed has announced we are operating under assumption the US economy is in recession: Expert
Economic experts Danielle DiMartino Booth and Alli McCartney react to the Federal Reserve raising interest rates by 75 basis points on ‘Making Money.’
On Wednesday, the Federal Reserve voted to lift the benchmark federal funds rate by 75 basis points for the third straight month.
The U.S. central bank is trying to get inflation under control with the most aggressive interest rate hikes in decades.
Speaking to reporters about the rate hike, Fed Chair Jerome Powell conceded that a recession is now possible — and that securing a soft landing will be "very challenging," though he cautioned no one knows if the tightening campaign will lead to a downturn, and if so how significant it will be.
WHY YOU SHOULD NOT PUT CHARGES ON YOUR CREDIT CARD AMID TODAY'S HIGH INFLATION
Fed officials this week also outlined an aggressive path of rate increases for the remainder of the year.
New economic projections released after the two-day meeting show policymakers expect interest rates to hit 4.4% by year's end — suggesting that another three-quarter percentage point increase is on the table.
“Before you spend money on anything else,” said Dave Ramsey, “you have to make sure your income covers” your four walls: food, utilities, housing and transportation.
In terms of credit card debt, Bankrate's latest survey found that the average credit card rate was at 17.96% as of Aug. 31, the highest level seen in decades.
That is up 3.5% from the July reading and up 10.8% from the average of 16.21% in August of last year.