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Rates Could Rise Again as Fed Fears Consistently Higher Prices

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The American economy is on the precipice of very real peril in 2022, and time is of the essence.

If the Biden administration’s fiscal policies simply haven’t been working, as evidenced by the worst inflation in 40 years, completely nonsensical gas price fluctuations, and a bonafide recession that the White House refuses to acknowledge.

Now, with consumer and wholesale prices both rising dramatically and unexpectedly, the Federal Reserve might have to turn to some drastic actions.

Federal Reserve officials have coalesced around a plan to raise interest rates by three quarters of a point next month as policymakers grow alarmed by the staying power of rapid price increases — and increasingly worried that inflation is now feeding on itself.

Such concerns could also prompt the Fed to raise rates at least slightly higher than previously forecast as officials face two huge choices at their coming meetings: when to slow rapid rate increases and when to stop them altogether.

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Even the experts appear to be a bit stumped as to what’s coming around the bend.

Central bankers had expected to debate slowing down at their November meeting, but a rash of recent data suggesting that the labor market is still strong and that inflation is unrelenting has them poised to delay serious discussion of a smaller move for at least a month. The conversation about whether to scale back is now more likely to happen in December. Investors have entirely priced in a fourth consecutive three-quarter point move at the Fed’s Nov. 1-2 meeting, and officials have made no effort to change that expectation.

Worse still:  If the economy doesn’t make a serious shift toward prosperity before the consumer-heavy holiday season, we could see and exponential decline in both fiscal velocity and volume.

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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.