2022 was a tough year. Amid a landscape of soaring inflation and rising interest rates, American consumers and businesses struggled to maintain an even keel.
In February 2021, inflation was reported at 1.7%, just below the Federal Reserve’s target rate of 2%. Today, inflation stands at 7.7%. To help get inflation under control, the Fed has been steadily raising the benchmark fed funds rate. As the fed funds rate is raised, it typically sends interest rates higher on many forms of consumer debt. The Fed hopes that higher borrowing costs reduce spending and help ease rising prices. Since March, the fed funds rate has been raised from near-0% to 4%, the most aggressive pace of interest rate hikes since 1980.
In 2021, fueled by the tailwinds of America’s post-pandemic recovery, the economy grew at a stellar 5.9% rate. But as those recovery tailwinds began to subside, the combined impact of high inflation and rising…
