Part 7/10:
During the COVID-19 pandemic, call it an unprecedented event, the economy faced dire straits. The Fed cut rates to zero, initiating Quantitative Easing (QE) and leading to one of the most incredible bull runs in recent history. Presently, the Fed has more ammunition in the form of higher interest rates, standing at 4.25% compared to just 1.5% during the initial pandemic phase. This additional buffer could prove indispensable.
Current Economic Conditions and Future Outlook
Rather than portraying the recession threat as a full-scale assault, it could instead signify a mere disturbance in the distance. The Fed has indicated it may take up to two years to tackle inflation, which could provide room for necessary cuts if the economy falters.