July 2023 Middle Market Monitor

The recurring topic regarding the economic health of the U.S. revolves around the decision of the Fed with regards to interest rates. After raising the federal funds rate to 5-5.25% from near zero levels during the pandemic, the Fed has been trying to combat decades-high inflation in the U.S, however the economy was still surging as of June 2023. Further action from the Fed may be in store to slow down inflation; as a result, it is speculated that the U.S. may enter a recession in the next 6-12 months.