The Federal Reserve is set to begin crucial new meetings on Tuesday, as it tries to get record inflation under control. While President Joe Biden remains optimistic there will not be a recession, some economists fear the United States is already on the edge of one. NBC’s Tom Costello reports for TODAY.
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#Interest #Economy #Inflation…(read more)
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The United States economy has been booming for the past few years, with healthy growth rates, low unemployment, and a favorable business environment. However, fears of a recession are rising as the Federal Reserve is expected to raise interest rates soon.
The Fed has been slowly raising interest rates over the past few years to prevent the economy from overheating and to keep inflation in check. The current federal funds rate is 2.25–2.50%, which is still historically low but higher than it was a few years ago. The Fed has signaled that it may raise rates two more times this year.
However, many economists worry that raising rates too quickly could tip the economy into a recession. Higher interest rates make borrowing more expensive for businesses and consumers, which can slow down spending and investment. It can also make it harder for people to afford mortgages and other loans.
Another concern is that the current economic expansion is already one of the longest in history, and many sectors of the economy are showing signs of slowing down. Global trade tensions, geopolitical instability, and a potential slowdown in China could hurt U.S. exports and business confidence.
Moreover, the recent yield curve inversion, which occurs when long-term interest rates fall below short-term rates, is a signal of a potential recession in the future. The yield curve has accurately predicted the past seven recessions, causing concern among investors and economists.
The Fed will have to balance these concerns with its dual mandate of promoting maximum employment and stable prices. If it raises rates too quickly, it could jeopardize the strong job market and trigger inflation. If it raises rates too slowly, it could allow inflation to rise above its target and create a bubble in the economy.
Many investors and business leaders are already starting to react to the possibility of a recession. The stock market has been volatile in recent weeks, with sharp swings up and down. Businesses have been cutting back on capital expenditures and hiring, and consumers have been saving more and spending less.
In conclusion, the prospect of rising interest rates and a potential recession is causing anxiety in the business world and among consumers. The Federal Reserve will have to tread carefully to avoid causing a downturn while maintaining its mandate to promote a healthy economy. It is a challenging balancing act that will require careful consideration and sound policy decisions.
If the American people ever allow private banks to control the issue of their currency first by inflation then by deflation the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered… I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people to whom it properly belongs.
Thomas Jefferson
The impact of interest rate hikes on the economy is indeed serious, because the increase in loan interest affects the whole people, and because companies seek profits from their capital, they will pass costs on to consumers, so inflation is more serious, so it is wrong to raise interest rates. At present, energy prices are soaring, and the government should immediately seek energy supply sources to increase the supply, or the 8/2 rule, which industry is not efficient and uses the most, and whether to reduce the use and reduce the majority of people. The economy is very important to the United States at the moment, because the United States must maintain the lead effect, so that Ukraine can confidently complete the fight against the invasion, come on, the US government, target the problem, not all victims.
We are not in a recession, it’s just transitory of reduced economic activity to a DEPRESSION !!!
The GDP (Gross Domestic Product) numbers were released today and it turns out we're in a recession.
EVERYBODY PANIC!
We've got to fix this immediately! Fortunately, we've consulted with the highly educated economists that got us into this mess to see how we can get out of it.
Here are some great ways to reverse the recession immediately:
1. Turn the GDP chart upside down: Wow, that was easy!
2. Change what the word "recession" means: Why yes, the economy is experiencing good vibes. Thank you for asking, Mr. Doocy.
3. Play the reverse card from your UNO hand that you've been holding onto: Oh no! The economy played its own reverse card!
4. Think long and hard, 'What would AOC do?': Probably something really brilliant and progressive!
5. Form a Congressional committee to research how to get out of recessions so they can publish their findings in 3 years: The buck stops eventually!
6. Invade Canada and take all their GDP for ourselves: They don't have any guns to defend themselves.
7. Ask Ukraine for our $80 billion back: They probably haven't spent it yet.
8. Order a second season of Jan 6 hearings: That'll distract everyone from their financial pains.
9. Ask Joey, a fifth grader: He'll know what to do!
10. Replace the entire government with Ron Paul: We can only dream
No more fear we are in a recession
Precious metals go up during inflation and decline in a DEPRESSION.
Recession (market crashing) and concurrent high Inflation is the known indicator of DEPRESSION or a long term "correction". Watch Precious metals, they decline in a Depression.
I just find it amusing to watch as team Brandon and others attempt to gaslight the public into believing that there's no recession.
Can’t wait to get my consumer law filings done and fix my credit, it’s getting crazy and I have to be ready
Know why? They’re about to end Student loan freeze. They’re about to nail 20 and 30yr agreements on millions of college graduates and students with the highest interest in history. It’s financial slavery on the future of our nations youth. They’ll never own homes. Rent forever because their student loan monthly payments are as high as a mortgage thanks to these interest.
How about we get extension on Student loans until which point “these interest rates solve inflation”?
Democrats literally farm and harvest our kids.
One thing I can guarantee you, politicians will never feel the effects, if anything, they will bank on it.
They can change the definition of recession all they want to the simple fact is we are in a deep recession now. who are they trying to fool. We are at the beginning stages of a hyperinflationary collapse.
Fire these crooks for making excuses for the banks to make more money. Politicians around the world are to blame for the extension of covid problems and for supporting a war. Everyone should be investigated into who made a profit from covid and the Ukrainian war. They should pay, not the average person. Crooked politicians steal from the people, just like in the past with aristocrats.
What happens to the money when people sell housings and stocks to buy better options.
I'm just wondering if they're going to count inflation numbers.
Ha ha “Possible” …righty-o
These bankers had ought to have been thrown in a dark prison after 08, now they are back and have more than 4x the size of the fraud.
Thanks Brandon for the amazing economic growth you have achieved
Jobs go un-filled – that is not recession.
There is no recession. Stop peddling it
The Resident has no clothes.
-Q
we did it jerome!- kamala harris
Let’s go Brandon!
Inflation will go up again. Don't depend on the FED or BOC. Take care your Assets and your Family.
This senile old man has ruined this economy
It's okay, this administration will just change the definition
Democrats just changed the definition of recession so we don't have one.
hyper inflationary depression……dont start wars you cant win
SHORT SELLERS WILL LOSE LOTS LOTS OF $$$!! BULLS pause b4 SQUEEZE the Bears, Guaranteed. That's how money is made. FED decision and CLOWN with NEWS are USELESS.
We have been in a recession for months.
Thank you Brandon
Biden is so out of touch with American's it isn't even funny, hes out of touch and senile.
We already in a recession since 2020 who are they fooling.
The sad thing about inflation is that even when you get it under control the damage is done. Those prices never go back down and then I startled at how some investors made millions from this downturn economy. I was wondering if such success rate could be achieved in this present market?
My greatest happiness is the $ 28,000 biweekly profit I get consistently>>
MSM approval rating is at 20%.fake news at its best selling propaganda for Democrats everyone in America knows this
Democrats desperately trying to twist the narrative and distract America from what a mess Democrats are making of our country and the world
True. The reality is that we could head to a recession, if we're not already in one. I appreciate the reserved optimism by President Joe Biden, his treasury secretary and his administration, but it's time to call reality for what it is. The economic is not good at all and that's not the fault of the Biden administration, even though the majority of public makes them the scapegoat for it by virtue of being the ones in power while all of this is happening. This would be a daunting challenge, even for the Republicans too should they ever have all branches of government and I don't think they would even have the first clue how to overcome this.