Last month, we talked about how the Fed raised interest rates. Now, the question is this: When do they stop?
Economists believe, according to Reuters, that the Fed will raise interest rates by half a percentage point in both May and June. Half of a point may not sound like much, but in the complex machinery of the modern economy, that’s a big number. Reuters polled economists to figure what may happen next, and many economists believe the probability of a recession is at 40 percent. Read last month’s Quick Notes if you need a refresher on how that works. But if you don’t have time for that — essentially, the Fed is trying to slow down inflation, which hit 8.5 percent in March, a four-decade high.
It’s important to remember this: A recession only means a slow down in GDP gro