The central bank has now hiked its policy rate from near-zero to the 3-3.25% range and signals larger increases going forward. The consecutive rate hikes are raising the odds of a recession. “There’s a likelihood that the Fed with further rate hikes pushes the economy into a recession in order to bring inflation down,” said Jason Pride, chief investment officer for private wealth at Glenmede in Philadelphia.
However, the unemployment rate declined to 3.5% in September, while payrolls increased by 263,000, indicating a strong job market. The report “really just shows that the consumer and corporate side have been very resilient despite the headwinds of the Russia-Ukraine war, rising interest rates, and slowing housing market,” said Jeffrey Roach, chief economist at LPL Financial.
