Effects of Fed's 10 Rate Hikes
The Fed has handed out 10 rate hikes, with a possible 11th next month.
What are the effects of the fastest rate hikes, so far?
[US Macro parameter: Mar 2022 vs. May 2023/latest]
📍Inflation: 8.5% vs. 4.0%
📍Unemployment rate: 3.6% vs. 3.7%
📍# Job vacancies: 12.0 million vs. 10.1 million
📍Hourly earning 12-month growth: 5.9% vs. 4.3%
📍Housing price*: +0.7% (peaked in June 2022)
📍New car price: +6.7%. Used car price: -3.1%
📍Credit Card balance: +17.2%
The lagging effects of the policy and the dynamically changing world lead us to a new and complicated territory.
* Based on S&P/Case-Shiller National Home Price Index
Data sources: FRED, FED