For banks, Fed’s aggressive rate hike cuts both ways
The Fed’s benchmark federal-funds rate rose to a range between 1.5% and 1.75% following policymakers’ decision Wednesday. The third rate increase of the year, with another looming in July, ‘will probably induce a slowdown in the economy,’ says Rohit Arora, CEO of the New York-based Biz2Credit. The Fed Chairman Jerome Powell said. But he conceded the risk of recession has escalated. ‘We’re not trying to induce a recession now. It is not going to be easy. There is a much bigger chance now that it’ll depend on... factors that we don’t control," he said.