Josh Lehner of the Oregon Office of Economic of Analysis' explored and explained a scenario for state's economy this week in his blog.
The hot U.S. economy is experiencing record inflation (a 40-year high of 8.6%), so now the Federal Reserve is trying to cool the economy by increasing interest rates.
In a KGW report, University of Oregon Economist Tim Duy said the Federal Reserve's raising interest rates will cause housing to be unaffordable for a larger number of people.
Federal officials are hoping the higher interest rates will slow consumer demand and lessen inflation.
In the past, Lehner has warned that increasing the interest rates could put the economy into a recession, and that's what he and his colleagues are starting to predict in their scenario.
Lehner said his office anticipates a recession in 2023 or possibly 2024, depending on the timing of the Federal Reserve's changes.
In KGW's report, ECONorthwest's Bob Whelan said the upside to rising interest rates, and cooling the economy, would be that prices should go down, and the return on savings accounts should go up.
Unfortunately, he also said the unemployment rate will most likely increase too as businesses pull back on spending.
Whelan said it's a good idea to find a job you like and stick with it, plus keep a cushion in savings.
