Economic Resilience and Fuel Subsidy
However, with the positive employment data in July, during which the economy added 528,000 jobs, there is still a possibility that the Fed will continue to raise its rate at a faster pace.
A trader stands in front of a monitor broadcasting the Fed Rate hike on June 13, 2018 at the New York Stock Exchange (NYSE) in New York City.
The Federal Reserve, the central bank of the United States, has indicated that it will raise its benchmark interest rate for the third time in September, although the rate increase will unlikely be higher than 75 basis points. The increase will be smaller than the market expectation of a 100 basis-point increase because some early indicators, such as the housing market, have shown that the recession in the US will take place early.
The US economic growth for the second quarter of 2022 was recorded at negative 0.9 percent. Technically, the US has entered a recession because it has recorded negative growth for two consecutive quarters. The Fed may raise its reference rate by less than 75 basis points due to the fall in the inflation rate to 8.5 percent in July from 9.1 percent in June.