Higher Rates – Faster for Longer
South State Correspondent
OCTOBER 23, 2022
In the last 12 months, the Federal Reserve went from arguing that inflation was a transitory phenomenon to raising interest rates to fight runaway inflation by three percent in just six months. The result is not only higher rates but the most severe interest rate hiking cycle in the past 35 years – and it is not over yet. Banks must plan for the possibility of high inflation and rising interest rates, not just for the next few years but perhaps for the remainder of the decade.