Avoiding Recession: Could it be a Nightmare for the Fed?

The U.S. economy has been on a rollercoaster ride over the past few years, but it appears to have avoided a recession so far – and that could be a nightmare for the Federal Reserve (Fed). With economic growth continuing at an impressive rate, Fed officials are warning that interest rates could rise higher than previously expected to keep inflation under control.

This news comes as no surprise given recent reports showing strong consumer spending and job gains across multiple sectors of the economy; however, rising interest rates can lead to slower economic growth if businesses become less willing or able to borrow money due to increased borrowing costs. Additionally, consumers may face higher mortgage payments if they hold variable-rate loans or adjustable mortgages, which would reduce their buying power further down the line.

It is important for all Americans who are considering taking out any type of loan or making large purchases such as cars and homes in 2020 should pay attention closely when it comes time for Fed meetings this year because there is potential for them to have an impact on their finances moving forward depending on what decisions are made with regards to raising interest rates even further beyond what was initially anticipated by experts earlier this year before these latest warnings were issued by officials from The Federal Reserve Board of Governors themselves.