Fed rate

The Fed rate is 4.5% and expected to rise to combat 6% inflation. The theory is that you have to raise the rate two points about the inflation rate to bring down the inflation which means raising the rate to eight percent. During the 1980 recession inflation rose to 13.5% and the Fed raised the rate to 19% before things started to come down. In 1981 home mortgage rates were 20%. Needless to say home sales were down.