CHARLOTTE, N.C. — Inflation is at a 40-year-high and stock prices continue to shrink, raising fears that the U.S. economy is at risk for another recession.
Let's connect the dots.
The Federal Reserve just stepped up its efforts to get inflation under control.
It raised its key interest rate by three-quarters of a point last week. It's the largest hike in nearly three decades.
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The Federal Reserve also signaled another hike may be in the near future. So, is this a sign of another recession? For now, economists say they don't see one in the near future.
Despite inflation costing consumers more, they say people are still spending at a healthy pace. And businesses are investing in things like equipment and software, which shows signs of a positive outlook.
But experts believe the fed would have to raise its key rate to a least 3.6 % by the end of the year to cause a recession. But even then, economists say the recession would be mild.
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