CoinVoice recently learned that according to Jinshi, in the year since the Federal Reserve raised interest rates to a more than 20-year high, it has successfully cooled the overheated US economy. But higher borrowing costs have also had some unexpected effects. High-income households are benefiting from rising stock and house prices. Businesses are borrowing quickly and consumers are continuing to consume. But in other areas, a year of high interest rates is finally starting to take a toll. Americans are taking longer to find jobs, and the unemployment rate has also risen. Small businesses are feeling the pain of rising loan costs. Low-income families are defaulting on auto loans and credit cards.
"The economy has softened over the past few months, and Fed officials will be very concerned if the economy starts to soften more quickly," said Veronica Clark, an economist at Citigroup. "That will lead officials to cut rates more quickly." [Original link]