A new report from the Federal Reserve Bank of New York suggests the Fed’s decision to begin to raise interest rates in December could signal a new era of economic depression.
The central bank’s rate hike will mark the first time in nearly a century that the Fed has raised interest rates.
It was a surprise move, given the Fed typically hikes its benchmark overnight rate after two months to coincide with the release of data.
The Fed raised its benchmark rate by a quarter of a percentage point in September 2016, after the U.S. unemployment rate peaked at 10.6 percent.
The PPI index for the S&P 500 was unchanged Monday, with the index moving down slightly.
The index rose 0.7 percent.
The Fed’s latest move comes amid an economic slump that has seen many businesses close their doors and leave the workforce.
The economy is struggling with weak consumer spending and slowing job growth, while inflation remains low.
Inflation is expected to average 2.5 percent in 2018, according to the Fed.