Hicks: Fed Action Should Help Indiana
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowWhile Hoosiers are feeling the impact of surging inflation from the gas pump to the grocery store, Ball State economist Mike Hicks says there is evidence things might not be as devastating as some originally thought in Indiana. Hicks believes plans by the Federal Reserve to aggressively increase interest rates throughout 2022 will stave off an economic downturn or recession.
Take the state’s massive recreational vehicle sector, where Hicks says rising gas prices and interest rates could result in a potential cut in production of about 50,000 units. That would still result in the industry’s second-best year ever.
Hicks provided perspective on the Indiana economy on this weekend’s edition of Inside INdiana Business with Gerry Dick.
Likewise, Hicks says rising mortgage rates should not dramatically dampen the housing market. “It could well go to 4 or 4 ½ percent, so we’re still talking about historically modest interest rates and borrowing costs, nothing that should cause consumers to back off from buying homes, RVs or automobiles in big numbers.”