The FED is going to break the economy

On July 26, 2023, the Federal Reserve raised interest rates by 0.25 percentage points, the highest level in 22 years. This was the fourth rate hike this year, and the Fed has signaled that it plans to continue raising rates in an effort to combat inflation.

While the Fed's goal is to bring inflation under control, its actions are also likely to have a significant impact on the economy. Raising interest rates makes it more expensive for businesses to borrow money, which can lead to slower economic growth and job losses.

In a recent article, economists at Goldman Sachs warned that the Fed's rate hikes could push the U.S. economy into a recession in 2024. The economists cited a number of factors that could contribute to a recession, including the Fed's aggressive rate hikes, the ongoing war in Ukraine, and the slowdown in the Chinese economy.

While it is still too early to say for sure whether the Fed's rate hikes will cause a recession, there are a number of signs that the economy is slowing down. For example, consumer spending, which is the backbone of the U.S. economy, slowed in May. Additionally, the housing market is cooling off, and business investment is expected to slow in the coming months.

What can we do to avoid a recession?

There are a number of things that the government and policymakers can do to avoid a recession. One important step is to provide support to low-income families and businesses that are most likely to be impacted by a recession. The government can also invest in infrastructure and education to create jobs and boost economic growth.

However, it is also important to acknowledge that the Fed's rate hikes are necessary to combat inflation. Inflation is at a 40-year high, and it is causing significant hardship for many Americans. The Fed has a responsibility to bring inflation under control, even if it means that the economy slows down in the short term.

I urge the Fed to be careful not to overshoot the mark with its rate hikes. The Fed needs to bring inflation under control, but it also needs to avoid causing a recession. A recession would have a devastating impact on millions of Americans. It would lead to job losses, home foreclosures, and increased poverty.

I also urge the government to take steps to support low-income families and businesses during this difficult time. The government can provide financial assistance, tax breaks, and other forms of support to help people weather the storm.

We need to work together to avoid a recession and to protect the most vulnerable members of our society. We need to make sure that everyone has the opportunity to thrive, even in the face of economic challenges.