The Federal Reserve’s raising of interest rates will likely slow an economy already burdened by high inflation, a pandemic, and a crisis caused by the Russian invasion of Ukraine, according to an April 19 press release by Fannie Mae’s Economic and Strategic Research (ESR) Group.
The aggressive new monetary policy by the central bank is already hindering sectors of the economy after already hit by two years of economic crises.
The government-backed mortgage lender said that the latest news regarding rate hikes will cause a modest recession in the economy next year and that it expects housing to slow over its forecast horizon.
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