Fed rate hike and recession worries

The Federal Reserve raised interest rates a surprising .75% to try to tame record high inflation. Is it too little, too late? And will slowing inflation trigger a recession?

The Federal Reserve raised interest rates by .75% Wednesday in an attempt to slow rising inflation rates. It was the biggest hike since 1994, higher than Chair Jerome Powell had previously signaled, demonstrating the severity of problem. But some economists worry the central bank’s actions have come too late to address the country’s economic troubles. Consumers have been feeling pain for months due to record high prices for goods, food, and services, including the whopping $5 per gallon for gas, which is projected to continue climbing over the summer.  But will putting the brakes on inflation also tip us into a recession?

This hour, we will talk about the Fed hike and the impact on the economy and how consumers, businesses and investors are coping with the economic uncertainty.

Dean Baker, senior economist with the Center for Economic and Policy Research, @DeanBaker13

Allison Schrager, senior fellow with the Manhattan Institute and columnist for Bloomberg Opinion. @allisonschrager