Last week, the Federal Reserve announced it was raising key interest rates by a quarter-point, bringing it to roughly 5.3%. This marks a 22-year high.
The latest move could lead to further increases in things like the costs of mortgages, credit cards and auto loans.
Russell Weaver, a quantitative geographer and director of research at the Cornell ILR Buffalo Co-Lab, joins our Mercedes Williams to talk about the 11th interest rate hike in the last 17 months.
They discuss what the Federal Reserves’ end goal is by raising interest rates, if there are any signs that point to the raising of interest rates has worked thus far and if the Federal Reserve's plan is not successful, what the next step might be.
In a statement last week, the Fed said the economy “has been expanding at a moderate pace,” a slight upgrade from its assessment in June. It's a sign that it sees the economy as slightly healthier than it was just last month.
Speaking at a news conference, Chair Jerome Powell revealed that the Fed’s staff economists no longer foresee a recession. In April, the minutes of the central bank’s March meeting had revealed that the staff economists envisioned a “mild” recession later this year.
The Associated Press contributed to this report.