Economic index flashes major recession warning sign

An often-watched economic gauge showed Friday that the U.S.

The leading economic indicators index of the Conference Board showed that conditions further deteriorated in October, with the measure down 0.8% from the previous month. That follows a 0.5% decline in September.

“The US

The snake reflects a worsening outlook among consumers, who are increasingly worried about higher interest rates and stubbornly high inflation, as well as an extended snake in the housing market.

Democrats slam ‘dangerous’ Fed rate hikes, warning of widespread job losses

There is a growing expectation on Wall Street that the Fed will trigger an economic downturn As it raises interest rates at the fastest pace in three decades to catch up with runaway inflation.

Officials this month approved a fourth consecutive 75-basis-point rate hike, lifting the federal funds rate to a range of 3.75% to 4% – near restrictive levels – and showed no signs of pausing rate increases.

In a troubling development, the Fed’s rate hikes have so far failed to curb inflation: the government reported this month that the consumer price index soared in October 7.7% from the previous year, hovering near a 40-year high.

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Fed hikes interest rates by 75 basis points for fourth straight month

This indicates that the Fed will have to continue charting its aggressive course, raising the odds that it will crush consumer demand and cause unemployment to rise.

“Let me say this,” Fed Chairman Jerome Powell told reporters earlier this month. “It’s very early to think about pausing. When people hear lags, they think about pauses. It’s very early, in my opinion, to talk about pausing our course hikes. We have a way to go.”

Hiking interest rates tends to create higher rates on consumer and business loans, which Slows the economy By forcing employers to cut spending.

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Economic growth has already contracted in the first two quarters of the year, with gross domestic product – the broad measure of goods and services produced in a nation – contracting by 1.6% in the winter and 0.6% in spring.

However, it rebounded over the summer, with GDP growing by 2.6% on an annualized basis in the three-month period from July to September.

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