The Federal Reserve raised the target range for the fed funds rate by 75bps to 2.25%- 2.5%  during  its  July  2022  meeting, the fourth  consecutive  rate  hike,  and  pushing  borrowing  costs  to  the  highest  level  since  2019.  Fed  fund  futures  implied  investors  were pricing in a more than 81% chance of another supersized 75 basis-point interest rate  hike  in  September. 

Explain to Jay the potential economic forces  behind the Fed rate hike and the impact of interest rate changes on the overall economy.

Answer rating: 100% (QA)

Dear Jay The Federal Reserves decision to raise the target range for the fed funds rate by 75 basis points to 22525 during its July 2022 meeting indicates a series of four consecutive rate hikes This ... View the full answer