While savings and government aid during the pandemic helped consumers keep their wallets stable, high inflation and rigorous rate hikes are taking a bite out of everything.
Although October’s inflation report shows signs of cooling down, Fed Chair Jerome Powell has cautioned that the final level of interest rates will be higher than expected. He said rates need to rise higher than forecasted until they reach a “sufficiently restrictive” level. As a result, many experts foresee the economy slipping into a recession next year, leading to an economic downturn.
