To combat inflation, the Fed will soon raise rates significantly again. The economy is balanced.

At a news conference, Fed Chair Jerome Powell defended the "unusually substantial" rate increase by stating that "the labor market is exceedingly tight and inflation is much, much too high."

Powell declared, "My colleagues and I are well aware that high inflation causes enormous hardship, particularly on those least able to manage the higher expenses of necessities like food, shelter, and transportation."

The average rate on a 30-year fixed-rate mortgage is at 5.54 percent, almost doubling from the start of the year, which has kept many buyers away, according to Freddie Mac. Sales and construction of new homes have both decreased.

The stock market comes next. The tech-heavy Nasdaq, which is in a bear market, has plunged by almost 25% this year, while the broadly based S&P 500 is down roughly 17%.

The Commerce Department will publish its quarterly report card on economic growth later this week. Gross domestic product decreased by 1.4 percent in the first quarter of the year.

According to Ryan Wang, a U.S. economist at HSBC, "there is a lot of evidence suggesting economic growth has slowed throughout the first half of this year."