The Fed announced another 75-basis-point interest rate hike last week after August’s consumer price index (CPI) rose higher than expected. The latest interest rate hike marked the third consecutive three-quarters of a percentage point rise in a row.
Moreover, Fed officials expect the key rate to end 2022 between 4.25% to 4.5%, up from the previously expected 3% to 3.25%. This is expected to push the economy into a recession.
