When the Federal Reserve started raising interest rates, some argue it might be too late to slow down the inflation rate and could lead into another recession.

Certified Financial Planner Tim Heisterkamp with Journey Financial in Jefferson says one of the signs that a recession could happen is if employers lay off more employees than they are hiring and if there are not as many jobs available as there are people looking for work. He describes another economic factor.

“The other one that has been a good indicator over the years is what we call an inverted yield curve. That means that the longer term of investments pay a lower rate of interest than the shorter ones. That is not what is going on right now, it’s a very, very flat yield curve, but we don’t have what we call an inverted yield curve. So that would be one of the things I’d be watching for to over the next several months is that when they raise up the short term interest rates, will the short term interest rates be higher than the long term. That usually, doesn’t always, but many times predicts a recession.”         

Heisterkamp says the Federal Reserve increased interest rates by 0.25-percent in April and another 0.5-percent in May. They are set to meet again on June 15th and July 27th, where Heisterkamp is expecting the rates to continue to increase each time by at least 0.5-percent.