The Fed could have trouble avoiding a double-dip recession
CNN
The Federal Reserve finally seems prepared to whip inflation. The last time the Fed faced surging prices like this, it jacked up interest rates and the US economy endured multiple slowdowns. Do Americans need to fear a repeat of the early 1980s?
Many investors and economists worry that the Fed may prematurely declare the war on inflation to be over, especially since Fed chair Jerome Powell made it painfully clear Wednesday after the Fed raised rates by a half of a percentage point that the central bank is not going to raise rates too aggressively.
Stocks plunged Thursday, wiping out Wednesday's gains. Investors seem worried about the impact that the Fed's plans to unwind the Treasury bonds and mortgage-backed securities on its portfolio will have on long-term rates, the market and economy. Concerns about tech stock valuations also weighed on sentiment.