Photo: Hannah Gaber / USA Today
WASHINGTON DC, December 15, 2022 – The Federal Reserve raised short-term interest rates by half a percentage point on Wednesday to the highest level since 2007.
“It’s not fair to tell people in Michigan to stock up their shelves and build vehicles and cars and everything else to sell, when we are right on the cusp of a recession,” said Anderson Economic Group Founder and CEO Patrick Anderson to 760 WJR’s Tom Jordan and Kevin Dietz.
“We already had what might have been declared a recession had it not been politicized. We had two consecutive quarters of negative growth, and unfortunately the Fed thinks we are going to have more of them.”
December 15, 2022 ~ Anderson Economic Group Founder and CEO Patrick Anderson talks with Kevin and Tom about the interest rate hike.
(CONTINUED) The Federal Open Market Committee voted to boost the overnight borrowing rate to a range of 4.25 – 4.5%, breaking a four-hike streak of three-quarter point increases, which were the most aggressive increases since the 1980s.
“Over the course of the year, we have taken forceful actions to tighten the stance of monetary policy,” said Federal Reserve Chair Jerome Powell on Wednesday. “We have covered a lot of ground, and the full effects of our rapid tightening so far are yet to be felt. Even so, we have more work to do.”
Officials implied more rate increases will come in 2023, with the expected cap at 5.1%, and said no reductions will come until 2024.
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