Just increased short-term interest rates to 5.5%
The Federal Reserve just increased short-term interest rates to 5.5%. The last time they were this high both the stock and housing market crashed back in 2008.
Both the Housing and the Stock Market are trading new all-time high in 2023 despite these big increases in interest rates by Jerome Powell and the Fed. Which is causing many to believe that there will be no crash and that the economy will hit a soft landing.
But this bullish sentiment is ignoring the lag effect present in Federal Reserve policy. Historically it takes anywhere from 12-18 months for increases interest rates to be felt in the real economy by consumers and businesses, as my guest Adam Taggart of the Wealthion YouTube Channel Explains.
Credit to : Reventure Consulting
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