A ceasefire between the U.S. and Iran has eased tensions but gas prices remain high amid uncertainty over the Strait of Hormuz. Experts say any relief at the pump could take weeks and may reverse if the truce falters.
Posts tagged as “Mark Zandi”
The Federal Reserve (Fed) announced on Wednesday that it is raising interest rates by a quarter of a percentage point, the ninth rate hike since March 2022. This decision is part of its ongoing efforts to slow the economy and battle stubbornly high inflation, but it runs contrary to the government's recent efforts to stabilize banks. Mark Zandi, chief economist of Moody’s Analytics, said that the Fed’s decision is “incongruous with efforts to re-establish the stability of the financial system.” It is unclear how the recent bank failures will affect the Fed’s decision-making going forward.
At the end of 2022, the U.S. economy was on solid footing with a 2.9% annual growth rate, buoyed by consumer spending and businesses restocking supplies. However, economists are warning that the economy could slow further in the current quarter and slide into a mild recession by midyear. The Federal Reserve has indicated it is unlikely to raise interest rates this year, and may even lower them to help stimulate the economy.