Federal national mortgage association lower the GDP forecasts for 2022 and you can 2023, forecasting that there can also be an economic recession next year. (iStock)
Fannie Mae released a new economic mindset on Tuesday, lowering its GDP projections for the remainder of 2022 and 2023. This comes as the Federal Reserve is expected to continue aggressively raising interest rates through 2023, which the mortgage lender said could slow economic growth.
Amid a significant impact from current conditions such as a 40-year highest inflation rate and the Russian invasion of Ukraine, the Fed’s aggressive monetary policy tightening has already strained economic output, according to the commentary from the Fannie Mae Economic and Strategic Research (ESR) Group.
“We still select several vehicle operators away from economic growth as a result of 2022, nevertheless need to rein in the rising cost of living, in addition to other economic symptoms, including the previous inversion of the Treasury produce bend, provided us to meaningfully downgrade the criterion to own monetary growth in 2023,” Doug Duncan, Federal national mortgage association elder vice-president and you will master economist, said.
One way to take advantage of current interest rates before they rise further is by refinancing your private student loans.