The Federal Reserve raised interest rates by another 25 basis points at its May meeting, marking the 10th consecutive rate hike in the central bank’s campaign to curb inflation. While Federal Reserve Chairman Jerome Powell indicated that a pause may be coming as soon as next month, Marty Green noted that there is not a “Goldilocks” rate that will quell both inflation and recession concerns.
In comments to National Mortgage Professional, the Scotsman Guide, and InsuranceNewsNet, Green noted that:
“The Fed wants more time to assess whether inflation is truly retreating to the Fed’s target level, while the market is hopeful that the Fed will more quickly recognize the need for a rate reduction to respond to, or prevent, a more severe recession. Unfortunately, it is unlikely that there is a Goldilocks rate that will address both concerns, so the Fed is letting markets know it will choose to stay the course to win the inflation fight before becoming overly concerned about a possible recession.”
- National Mortgage Professional – The Fed Hikes Rate For 10th Time In 14 Months
- Scotsman Guide – Federal Reserve increases benchmark rate by 25 basis points
- InsuranceNewsNet – The Fed raises rates again, continues tug-of-war with inflation