(The Center Square) – Financial markets expect the Federal Reserve to leave interest rates unchanged this week. That remains my expectation. But the case for another increase is getting harder to dismiss.
Regardless of the Fed’s decision next week, American households won’t get much relief. Prices are rising faster than wages, a frozen labor market makes finding a better-paying job harder, and borrowing costs remain stubbornly high. The recent stock market pullback adds pressure on households relying on investment gains to support their spending.
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