Another Kick in the Teeth: Fed Set to Raise Interest Rates Again Wednesday
By Bob Hoge | 4:45 PM on September 20, 2022
Skyrocketing inflation has brought pain to households across the country, but things are about to get worse before they get better. Biden’s economy is in for another jolt Wednesday, as the Federal Reserve is expected to raise interest rates by as much as .75 percent—possibly even more—its fifth boost in a row since March. Markets are reacting negatively, with the Dow Jones down over 300 points, or one percent, as of this writing. The index has dropped almost 10 percent for the year.
The U.S. is not alone in raising rates to combat persistent inflation. According to the Wall Street Journal:
Other central banks in wealthy economies, including the U.K., Europe, and Canada, have also been raising rates in historically large increments, creating the most rapid tightening in global monetary policy since 1989, according to economists at Credit Suisse.
Why are they doing this? Simply, consumer prices rose a whopping 8.26% in August 2022 from the year before, and this is really the only tool the Fed has to effectively combat inflation. They could try telling President Joe Biden and Congress to stop spending like drunken sailors, but that appeal would assuredly fall on deaf ears. Is it time to start worrying about a recession, if we’re not already in one?
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https://redstate.com/bobhoge/2022/09/20/another-kick-in-the-teeth-fed-set-to-raise-interest-rates-again-wednesday-n630415
