Dow Falls 400 Points As Fed Readies Another Interest Rate Hike—Fueling Extreme Investor Bearishness
ForbesMAY 2022
What the Fed is forgetting to factor into the inflation equation are supply chain issues, which are also contributing to rising prices. If supply bottlenecks continue, then these rate hikes could add to an already growing unemployment rate without actually bringing prices down — if that becomes reality, the US is looking at a devastating recession.
Though no one knows yet whether we're headed toward a recession, what we do know is that the economy must be cooled down in order to fight inflation. The Fed's only goal, for now, should be bringing prices down, which is what they've rightly committed to doing.