Stimulus Checks seem unlikely. Nine of the last ten US recessions have been predicted by an inverted yield curve between 2-year and 10-year US Treasury binds. While the arc of this stimulus check first went negative in July 2022, after Federal Reserve Chair Jerome Powell made hawkish statements on interest rate policy going forward in Tuesday’s Senate hearings the curve hit levels not seen since 1981.
The Federal Reserve’s Federal Open Market Committee has released its quarterly economic outlook and projections, forecasting the median unemployment rate for 2023 to hit 4.5 percent. Fed believes unemployment could rise and the response from political leaders on the central bank’s continued rate increases. Additionally, the Fed’s projections do not provide insights into how these various groups will be impacted by the increase in unemployment spurred by rate hikes.
Stimulus Check On The Fed Interest Rate Hike Affect Mortgages, Student Loans, And Credit Cars?
The Federal Reserve has announced yet another interest rate increase, moving the federal funds rate up to 4.75-5 percent. The federal funds rate is set by the Fed and is used as a benchmark with which banks borrow and lend to each other. It is not the exact rate that customers experience, but the two are closely linked. The Fed is hoping that continuing to raise rates will cool the economy by discouraging borrowing. However, for those who already have some kind of credit mechanism or loan, this strategy has been costly.
For more grocery shoppers, the price of eggs reached shocking levels earlier this year. With companies exploiting scares over avian flu, supply fell, and prices rose rapidly. The Bureau of Labor Statistics is now reporting that in February, the price of eggs began to fall, a positive sign for shoppers.