Rising Interest Rates Raise Recession Fears as Fed Walks Tightrope on Inflation
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Longer-term interest rates have been climbing sharply, leading to higher borrowing costs that could cool economic growth.
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The Federal Reserve wants to slow the economy to curb inflation, but there are risks of accidentally triggering a recession if rates rise too much.
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Mortgage rates near 8% are causing some homebuyers to hesitate, an early sign of economic impact.
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Higher interest rates have already led to stress for some financial firms and could make business borrowing more expensive.
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It's unclear if the pop in rates will last or if it goes too far, potentially limiting the Fed's ability to keep raising its policy rate.