After the Federal Reserve started raising interest rates to fight the rise of inflation in March 2022, Wall Street’s top minds released a steady stream of recession predictions. Surely, they warned, rising borrowing costs, sky-high consumer prices, and geopolitical tensions would combine to slow the economy to a standstill—or worse. Some even argued that a “major recession,” an economic “hurricane,” or “another variant of a Great Depression” could be on the way.
But it’s been more than 20 months since the Fed’s first rate hike and we’re all still waiting for the experts’ nightmare scenarios to become reality. The labor market has remained relatively robust; GDP continues to grow; and inflation is falling back towards the 2% target rate.
