FOR IMMEDIATE RELEASE
May 2, 2022
In the April 2022 CUNA Economic Update, CUNA Senior Economist Dawit Kebede explains the possible impact the Federal Reserve’s updated monetary policy will have on inflation through 2023.
Highlights from the April update include:
“If the Fed turns out to be particularly skillful and lucky, these [interest] rate movements will slow the economy enough to cool inflation without causing a recession. However, the risks are that the monetary tightening could cause a mild recession in 2023 or 2024.” — Dawit Kebede, PhD
The link between interest rates and inflation
“It is very important to get inflation under control, which is why the Federal Reserve already started raising the federal funds rate, and also announced several increases throughout the year…. The goal is to lift rates so they prevent prices from going up, but not so high that they slow down economic activity.”
Predictions on the 10-year Treasury rate
“Although difficult to forecast, we expect the 10-year Treasury rate to rise to 3.25% by December 2022, and to 3.5% next year.”
Dawit Kebede, PhD, is a Senior Economist for the Credit Union National Association (CUNA). He has over eight years of research experience with a focus on trade, employment, and consumer finance. Kebede has been quoted by Fox Business, CNBC.com, and MarketWatch, among other outlets.
Please contact Deshundra Jefferson (firstname.lastname@example.org) to set up an interview with CUNA Senior Economist Dawit Kebede.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 130 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.