Biden’s economy is about to feel the heat from the Fed
The economy has been strong enough to handle higher rates, but it’s not designed for them to stay that way for long after a decade and a half of ultra-low borrowing costs.
Federal Reserve Chair Jerome Powell may be done raising interest rates, but the real damage to the economy from the highest borrowing costs in two decades may be yet to come.
The Fed is projecting that rates will remain elevated through 2024, dashing investors’ hopes for relief as inflation eases and subjecting the economy to a lengthy stress test over the next year. The fallout is already being felt with falling stock prices and soaring debt costs.
