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Cycle Watch | May 2022: Economic cross-currents

May 13, 2022
By Mark Hackett
By Ben Ayers
illustration of chart going up

Soaring inflation and a tight labor market are threatening the economy right now. With inflation at a 40-year high, the Federal Reserve hiked rates again this month, the second of seven increases expected this year. The Fed hopes to tame inflation and cool off the demand for labor, but without causing a recession. Historically, these hiking cycles coincide with a strong economy, though it’s likely to grow slower now. Still, strong GDP growth is projected over 2022.

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