The 6.5% Federal Funds Rate is about to be raised to 7.25% and the US economy is already in a recession

&#x200B;<br><br>The Federal Reserve raised interest rates by 0.75% for the fifth consecutive time to combat inflation, but they seem oblivious that they've done too much already. <br><br>&#x200B;<br><br>&#x200B;<br><br>&#x200B;<br><br>&#x200B;<br><br>The **latest GDP data** shows that the economy shrank by 0.7% in Q3. This marks the beginning of a **recession**, which the International Monetary Fund defines as two consecutive quarters of economic contraction. This will not be a short and shallow recession, but a long and deep recession, which will end when the Fed finally stops raising interest rates.<br><br>&#x200B;<br><br>The **latest jobs report** shows that the economy is **already losing momentum**. Job growth has slowed significantly from its peak in February, and the number of job openings is at a three-year low. This is a **clear indication of slowing economic growth** and a **recession that is already here**.<br><br>&#x200B;<br><br>The **Fed seems oblivious** to the fact that a 6.5% Federal Funds Rate is **high enough** to **crush** the economy. The economy has already **contracted**, **hiring has slowed**, and **job openings have fallen**. This is the **definition** of a **recession**, and **the Fed still wants to push the economy further**.<br><br>&#x200B;<br><br>&#x200B;<br><br>&#x200B;<br><br>&#x200B;<br><br>The **Fed has a history of overreacting** to inflation and **causing deeper recessions**. In 2001, the Fed raised interest rates to 6.5% to combat inflation, but this led to a recession that **lasted for 8 months longer** than it would have if the Fed had intervened less. The Fed has **no excuse** for not being able to **predict the impact** of its actions and **adjust accordingly**.