What's behind the Fed's aggressive rate hike

+ why 'father' and words like it are spoken around the world ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Federal Reserve is trying to slam the brakes on the U.S. economy as it plays catch-up in its belated fight against spiking inflation. Yesterday’s 0.75 percentage point rate interest rate hike – the biggest since 1994 – is just the start, with an equally supersized increase possible in July. By the end of the year, the Fed now expects its target short-term interest rate, which benchmarks the borrowing costs on pretty much everything, to reach 3.4% – double what it is now.

Could that cause the U.S. economy to fall into recession? The odds of one next year are “close to a coin flip,” writes Brian Blank, who studies how businesses adapt and handle economic downturns. The Mississippi State University finance scholar explains how the Fed is trying to nail a “soft landing” for the economy, the stakes if it gets it wrong and what it all means for consumers.

Also today:

Bryan Keogh

Senior Editor, Economy + Business

Wall Street is following Fed rate hike news with rapt attention. AP Photo/Seth Wenig

5 things to know about the Fed’s biggest interest rate increase since 1994 and how it will affect you

D. Brian Blank, Mississippi State University

The Fed raised interest rates the most in nearly three decades to fight stubborn inflation. A finance expert explains what’s happening, the risks and what it means for consumers.

Arts + Culture
From ‘dada’ to Darth Vader – why the way we name fathers reminds us we spring from the same well Valerie M. Fridland, University of Nevada, Reno A linguist explores the origin of the word ‘father’ – and why derivatives are common in languages across the globe.

Science + Technology

Why Tesla’s Autopilot crashes spurred the feds to investigate driver-assist technologies – and what that means for the future of self-driving cars

Hayder Radha, Michigan State University

An autonomous vehicle expert explains how Tesla’s Autopilot works, what prompted US authorities to investigate the system and what changes might be in store for the company.
How math and language can combine to map the globe and create strong passwords, using the power of 3 random words

Mary Lynn Reed, Rochester Institute of Technology

A mathematician explains how language can keep your online accounts safe and pinpoint your location on the planet.

Health + Medicine
Babies don’t come with instruction manuals, so here are 5 tips for picking a parenting book Denise Bodman, Arizona State University; Bethany Bustamante Van Vleet, Arizona State University Being a parent can be tricky, and many turn to parenting guides for help in figuring out what to do. Two human development scholars have tips for picking a book that will be useful for you.

Environment + Energy
Coastal gentrification in Puerto Rico is displacing people and damaging mangroves and wetlands Carlos G. García-Quijano, University of Rhode Island; Hilda Lloréns, University of Rhode Island Puerto Rico’s tourism industry is booming as nations lift COVID-19 travel restrictions, but development is displacing people who have lived along its coastlines for years.

Education

Summer reading: 5 books on the joys and challenges of LGBTQ teen and young adult life

Jonathan Alexander, University of California, Irvine

A scholar of queer literature takes a closer look at five books that are pushing the envelope on society’s understanding of LGBTQ life.
When texts suddenly stop: Why people ghost on social media

Royette T. Dubar, Wesleyan University

With online use ever-increasing, so is the rise of ghosting – when friends decide to disappear into the social ether.

Trending on site
Genetic paparazzi are right around the corner, and courts aren’t ready to confront the legal quagmire of DNA theft Just how accurate are rapid antigen tests? Two testing experts explain the latest data Patriarchy and purity culture combine to silence women in the Southern Baptist Convention – and are blocking efforts to address the sexual abuse scandal

Today's graphic
From the story, More student or faculty diversity on campus leads to lower racial gaps in graduation rates
About The Conversation: We're a nonprofit news organization dedicated to helping academic experts share ideas with the public. We can give away our articles thanks to the help of foundations, universities and readers like you. Donate now to support research-based journalism

What's behind the Fed's aggressive rate hike

5 things to know about the Fed’s biggest interest rate increase since 1994 and how it will affect you

Arts + Culture

From ‘dada’ to Darth Vader – why the way we name fathers reminds us we spring from the same well

Science + Technology

Why Tesla’s Autopilot crashes spurred the feds to investigate driver-assist technologies – and what that means for the future of self-driving cars

How math and language can combine to map the globe and create strong passwords, using the power of 3 random words

Health + Medicine

Babies don’t come with instruction manuals, so here are 5 tips for picking a parenting book

Environment + Energy

Coastal gentrification in Puerto Rico is displacing people and damaging mangroves and wetlands

Education

Summer reading: 5 books on the joys and challenges of LGBTQ teen and young adult life

When texts suddenly stop: Why people ghost on social media

Trending on site

Genetic paparazzi are right around the corner, and courts aren’t ready to confront the legal quagmire of DNA theft

Just how accurate are rapid antigen tests? Two testing experts explain the latest data

Patriarchy and purity culture combine to silence women in the Southern Baptist Convention – and are blocking efforts to address the sexual abuse scandal

Today's graphic

About The Conversation:

Donate now to support research-based journalism

Older messages

Family photos reveal racist past in Texas

How to improve sustainability investing

The political standstill on US gun control

How the NRA has changed

Mass shooters at schools – what the data shows

You Might Also Like

AI chatbots keep failing every accuracy test thrown at them

Everything We’ve Written About That’s on Sale at Nordstrom

What A Day: Bad Car-ma

Rohingya refugees just lost half of their food aid. Now what?

Shayne Coplan’s Big Bet Is Paying Off

We need your input.

We Talkin’ About Practice?

Seattle startup takes eco-friendly aim at recycling clothing

☕ The beauty of it all

🤔 What’s in your wallet? A scam.