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What Happens When Fed Raises Rates 
Another Recession?
Feds are Warning! 
Janet Yellen, The Federal Reserve Chair, warned investors 
that the Fed might raise interest rates sooner projected
Investors Aren’t Listening 
The market is stable, meaning investors believe the 
near-zero rates will continue
The Fed Wants 
Full Employment 
Something near 5.2% - 5.5% 
unemployment
It’s at 6.1% 
down from 10% just 5 years ago
Positive economic indicators 
might force the Fed to raise 
rates early.
The possible impact higher rates could have on 
the economy include less growth, less business 
investment, slower housing market activity, and 
a stagnant unemployment rate. This stagnant 
unemployment rate is contrary to the Fed's goal 
of full employment.
Great News! 
Research by Oxford Economics 
shows that the US economy would 
not fall back into recession if the 
Fed decides to raise interest rates.
One thing is for sure, it's important the Fed's 
communicates and manages market expectations. 
Whether investors will listen remains to be seen.% 
!
thank you.

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Kathy Bostjancic - Higher Interest Rates?

  • 1. What Happens When Fed Raises Rates Another Recession?
  • 2. Feds are Warning! Janet Yellen, The Federal Reserve Chair, warned investors that the Fed might raise interest rates sooner projected
  • 3. Investors Aren’t Listening The market is stable, meaning investors believe the near-zero rates will continue
  • 4. The Fed Wants Full Employment Something near 5.2% - 5.5% unemployment
  • 5. It’s at 6.1% down from 10% just 5 years ago
  • 6. Positive economic indicators might force the Fed to raise rates early.
  • 7. The possible impact higher rates could have on the economy include less growth, less business investment, slower housing market activity, and a stagnant unemployment rate. This stagnant unemployment rate is contrary to the Fed's goal of full employment.
  • 8. Great News! Research by Oxford Economics shows that the US economy would not fall back into recession if the Fed decides to raise interest rates.
  • 9. One thing is for sure, it's important the Fed's communicates and manages market expectations. Whether investors will listen remains to be seen.% !