If the Fed Raises Rates, What’s the Price? | Eric Swanson

Inflation has come off its peak, but the path back to the Federal Reserve’s 2 percent target remains unsettled. Longer-term rates are climbing, and markets are moving away from the rate cuts many homebuyers and businesses had anticipated. That leaves a harder question: Could the Fed raise rates before inflation is fully under control?

For borrowers, higher financing costs can arrive before the Fed makes a formal decision. Those costs affect spending and hiring before officials decide what comes next.

Eric Swanson, professor of economics at University of California–Irvine, has spent years studying monetary policy and Fed communication. He joins us to explain what investors are reading into current rates and how Fed officials balance the push to lower inflation against the risk of weakening the economy too much.

Views expressed in this video are the opinions of the host and the guest and do not necessarily reflect the views of The Epoch Times.