NC economist predicts recession is near as Feds hike interest rates

DURHAM, N.C. (WTVD) -- When Erica Hines left Fayetteville on Wednesday morning with friends, she drove 80 miles to Durham for her doctor's appointment. That appointment was canceled, which was a wasted trip because it currently costs her $82 to fill up.

"It's soon as you get outside and get on the road, your gas is gone. It's ridiculous. It's one thing to save, but it's like, I'm dipping in savings so I can live," said Hines. "It's not just gas. It's everything."

Economist warn we could be heading toward a recession. The Federal Reserve raised interest rates, a rate hike of .75% -- the largest increase in three decades.

"I'm giving it a one in three chance of a recession happening by the end of this year. I don't think it will be a bad recession like we had in 2007 and 2009, but I think it will be a recession," said N.C. State professor and economist Mike Walden.

According to Walden, this is a belt-tightening situation, which will lead to higher mortgage rates and credit card fees. His advice for consumers is start saving and budgeting.

"If I was a person looking for a job or considering leaving my job for another, I'd be careful. I think job openings will not be as available as they have been. If I was a business person who was thinking about expanding, I'd also think twice about that," said Walden.

He predicted the second half of this year to be significantly slower.

It's something Hines said has already been challenging.

"Everything is going up except the pay," she said.