The Fed makes a move

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The Fed makes its move.
Welcome to the Know the Difference Minute
To no one’s surprise, the Federal Reserve has rolled out a quarter-point hike hoping to cool off spiking inflation.
What set markets back almost immediately was the announcement that it would raise rates another 6 times this year—which, to some, was far more aggressive than expected. That points to a consensus funds rate of 1.9% by the end of the year.
With higher borrowing costs, both consumers and business can expect to pay more for car loans, mortgages, and credit card balances. Even with pent-up demand, consumers might start thinking twice about purchases in the weeks and months to come.
Jerome Powell did say the probability of a recession in the next year is not particularly elevated with a strong labor market, payroll growth, and healthy business and household balance sheets.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.