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Fed Makes Another Major Rate Hike as Inflation Strains Economy

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If there is anything that we’ll remember about the Joe Biden presidency, it may just be how horribly they’ve squandered what should have been an economic slam dunk.

Coming out of the coronavirus pandemic, experts seemed to agree that we could see something like a “new roaring twenties”.  Americans had been stuck working from home and saving money by default on account of there being nowhere to spend it.  Once the world reopened, it would or should have been our oyster.

Instead, we’ve been treated to non-stop inflation, skyrocketing energy costs, and no real response from the White House at all.

In fact, things have now gotten so bad that the federal reserve is stepping up with a second consecutive monthly rate hike.

The Federal Reserve on Wednesday raised interest rates by 0.75% as the central bank attempts to avoid a deep recession.

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The decision to move by 0.75% matched the magnitude of the Fed’s last move in June, which was its largest single-meeting rate increase since 1994. Wednesday’s decision was unanimously agreed upon by voting members of the Federal Open Market Committee.

The Fed has now moved in four consecutive meetings to increase borrowing costs in America, extending its effort to dampen household and business spending. The goal: to wrangle inflation running at rates unseen since the early 1980s.

Short-term borrowing rates are now between 2.25% and 2.50%, comparable to levels in 2019.

Biden and his team had long suggested that inflation would be “transitory”, and only recently began to admit that they had completely misjudged the situation.

 

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About the Author:
As a lifelong advocate for the dream promised us in the Constitution, Andrew West has spent his years authoring lush prose editorial dirges regarding America's fall from grace and her path back to prosperity. When West isn't railing against the offensive whims of the mainstream media or the ideological cruelty that is so rampant in the US, he spends his time seeking adventurous new food and fermented beverages, with the occasional round of golf peppered in.




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