Will Fed Rate Hikes Be Able To Stop Inflation?

July 21, 2022

The Fed has been raising interest rates in order to combat inflation, and has another hike on track for next week.

But are interest rate increases actually working?

So far the inflation readings haven't slowed at all. And when you consider the challenging dynamics facing the Fed, it's worth considering whether the current plan is actually going to fix the problem.

The rate hikes are already slowing down the economy, yet perhaps more significantly, the Fed is looking at interest rates in the 3-4% range, while inflation (even according to the somewhat understated CPI and PPI) are still between 9-11%.

But to find out more about the situation, as well as where it may be headed, click to watch the video now!

Arcadia Economics

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