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08-01-22 | News
The NAHB points out that housing already seems to be facing a recession, with home builder sentiments declining for seven months straight and a decline in the pace of home sales to match. Fed Chairman, Jerome Powell stated that data will be the biggest way to avoid a recession as it will allow the Federal Reserve to act preliminarily and take measures to avoid that outcome.
https://www.nahb.org/blog/2022/07/fed-rate-hike
Federal Reserve Raises Federal Fund Rate
The NAHB Reports that the Federal Reserve has increased the Federal Funds Rate by 0.75%
The Federal Fund rate slows down the economy as it makes borrowing money more expensive for consumers and businesses.
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As of July 27th, and according to the National Association of Home Builders (NAHB), the Federal Reserve hiked up the rate for federal funds by 0.75% to try and combat inflation. This is after the month of June, which saw similar aggressive action to fight inflation, and raises the Fed rate to 2.5% which will slow the economy through making money more expensive to borrow for consumers as well as businesses.
The NAHB points out that housing already seems to be facing a recession, with home builder sentiments declining for seven months straight and a decline in the pace of home sales to match. Fed Chairman, Jerome Powell stated that data will be the biggest way to avoid a recession as it will allow the Federal Reserve to act preliminarily and take measures to avoid that outcome.
https://www.nahb.org/blog/2022/07/fed-rate-hike
Filed Under: NAHB, FEDERAL GOVERNMENT, ECONOMICS, LASN
