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Why the U.S. economy is still strong despite the Fed’s 2022-23 rate hikes

2 January 2025
in Business
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Why the U.S. economy is still strong despite the Fed’s 2022-23 rate hikes
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The Federal Reserve raised interest rates in 2022-23 to the highest levels in over a dozen years, but both consumers and businesses managed to withstand the increased borrowing costs without significant negative effects. Despite the hikes, there was no significant collapse in spending or investment, indicating a surprising resilience in the face of higher interest rates. This unexpected outcome suggests a strong underlying economy that can weather changes in monetary policy.

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