It seems like we’ve been hearing about an impending economic recession for a long time now. During 2022, talk of a recession came every time the Federal Reserve announced it was raising interest rates to help bring down inflation which peaked in the U.S. at 9.1% last June.
The Fed raised interest rates seven times in 2022, and it plans to keep doing so in 2023. But early indications are, the future interest rate hikes won’t be as high as last year because inflation has fallen to 6.5%.
The expected easing of interest rates hikes and the decrease in inflation are some of the promising signs that the recession so many had predicted, and so many others dreaded, may not materialize this year. That’s according to Felix Rioja, an economics professor at Tulane University. Of course, 2023 is less than a month old and things can change.
Even with a lower chance of recession, 2023 will still have its share of economic pain, most likely in the housing market. Listen to my conversation with Rioja above.
