interest rates...

Inflation is hurting everyone but will drop, and the economy is healthy overall for those seeking good jobs in a tight labor market, says a financial expert.

The good news is the price of a barrel of crude oil has fallen about 20% below its record high of $130.5 reached on March 7. But on Wednesday, in an anticipated move, the Federal Reserve bumped up interest rates for the first time since 2018 in order to blunt rising inflation rates not seen as high since the early 1980s. The Fed sees six more rate hikes this year and three more in 2023.

Caleb Silver is a US journalist and the editor-in-chief of Investopedia. He joined KSL NewsRadio’s Dave Noriega and Debbie Dujanovic to discuss the inflation, interest rates and what lies ahead for consumers.

“Well, the risk is recession. And that’s the one everybody’s worried about, especially with rising oil prices. Oil prices have come down from their highs from last week, but they’re super-unpredictable right now,” Silver said.

He said the Fed wants to hit the sweet spot: brake the overheated economy without crimping borrowing costs for consumers and businesses seeking new workers.

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