What Happens When Fed Raises Rates Another Recession?

Feds are Warning!Janet Yellen, The Federal Reserve Chair, warned investors

that the Fed might raise interest rates sooner projected

Investors Aren’t ListeningThe market is stable, meaning investors believe the

near-zero rates will continue

The Fed Wants Full Employment

Something near 5.2% - 5.5% unemployment

It’s at 6.1%down from 10% just 5 years ago

Positive economic indicators might force the Fed to raise

rates early.

The possible impact higher rates could have on the economy include less growth, less business investment, slower housing market activity, and a stagnant unemployment rate. This stagnant

unemployment rate is contrary to the Fed's goal of full employment.

Great News!

Research by Oxford Economics shows that the US economy would

not fall back into recession if the Fed decides to raise interest rates.

One thing is for sure, it's important the Fed's communicates and manages market expectations. Whether investors will listen remains to be seen.%

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thank you.