The Fed's Dilemma: Rate Hikes and Economic Risks
TL;DR Summary
Economists warn that the Fed's decision on interest rates could trigger a recession similar to the 2007-08 financial crisis, but with greater "speed and magnitude." The rate hike could exacerbate instability within the financial system, but pausing risks allows inflation to become entrenched in the economy or roar back with a vengeance. The Fed's aggressive action of trying to control markets rather than following markets is a major mistake, according to experts.
- Fed rate hikes will trigger a downturn of greater 'speed and magnitude' than the Great Recession: Economist Fox Business
- Fed needs to stress test banks' interest rate risks: Former Fed Gov. Frederic Mishkin CNBC Television
- Jeremy Siegel's hopes for US economy rise thanks to banking crisis Markets Insider
- Fed could put US economy in 'very dire situation' with rate hike decision, expert warns Fox Business
- The Fed is dealing with a 'true dilemma,' investment management firm says CNBC International TV
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