Thursday, August 18, 2022

THINK STRATEGICALLY:

By on July 15, 2022

The Benchmarks the Fed Must Contend With

The Biggest Juggling Act in the World

The norm is that numbers do not lie; they usually tell the tale for you. With every media outlet and dozens of experts proclaiming that a recession is imminent, we decided to analyze the critical economic and financial issues affecting our environment. While we do not dismiss the possibility that a recession may occur, our view is that the pessimistic tone of some is blurring the outlook.
Let us take a look at the seven bench-marks that the Fed must juggle.

Interest Rates Outlook
As the Fed sees inflation as persis-tent, it details that an increase of 50 to 75 basis points will be needed during the next meeting. As the Fed continues tackling inflation, having already risen rates by 75 basis points to a range of 1.5 percent-1.75 percent in June, and as indicated, a 50 to 75 basis point increase in July, taking rates to a range of 2 percent to 2.5 percent, we could see rates climbing above 3.5 percent in 2023.

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