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With a Recession Looming and Interest Rates Rising, What's Next for the Economy? Recent news and updates on the economic state for 2023.

By Dominic Blanco Edited by Micah Zimmerman

Opinions expressed by Entrepreneur contributors are their own.

The S&P 500 is down nearly 20% year-to-date, the dollar has lost lots of buying power, and the fed has made it increasingly difficult for young buyers to purchase their first home.

With all these factors at play, it is essential to listen to economic experts like Jerome Powell. Powell spoke on interest rates again in early September. The Fed is expected to continue raising interest rates until the inflation numbers are under control. "Restoring price stability will take some time and requires using our tools forcefully to bring supply and demand into better balance," Mr. Powell said in those remarks. "While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses."

The Feds have raised rates four times in the past year and are set to increase the prime rate, with inflation being their number one enemy. As a result, consumer borrowing is about to get way more complicated. It is essential to understand how the federal funds rate works to understand what is happening. It is the rate set by the Central Bank at which banks lend funds to each other overnight.

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