The Fed’s Wednesday interest rate hike is likely to add to headwinds facing the U.S. economy, according to the chief economist of Moody’s Analytics, as a growing number of analysts see a recession as more likely due to the banking crisis.
“The Fed’s decision to raise interest rates again given the fragile stability in the banking system is disappointing,” tweeted Mark Zandi on Wednesday evening.
Zandi called the rate hike “unnecessary”, citing slower economic growth and tighter lending. He also pointed to “moderating” inflation, which he forecast would weaken further “given low oil prices, weak rents, and slower wage gains.”
Moody’s Chief Economist Mark Zandi expresses disappointment and calls the Fed’s latest interest rate hike unnecessary
Image by Gerd Altmann from Pixabay