In news that’s probably going to totally ruin your day, the Federal Reserve raised the benchmark interest rate on Wednesday by three-quarters of a point for the second straight time in the most aggressive upward drive in the last 30 years, all in a bid to try and put a leash on inflation.
Forgive me for my lack of eloquence here, but the Biden economy just plain sucks.
I think when you peruse the shelves at the supermarket, you’ll concur with my assessment. Nothing like having to sell off all your possessions in order to afford enough food to feed your family for a week, right?
And yet, for some reason, President Joe Biden thinks we’re all dumb enough to actually believe him when he says our economy is strong and not headed for a recession. If that’s the case, why suddenly change the definition of a recession?
Things that make you go, “huh.”
According to Newsmax, this move by the Fed will raise its key rate, which will end up having an impact on many consumer and business loans to a range of 2.25 percent to 2.5 percent, which is the highest level since 2018.
“The central bank’s decision follows a jump in inflation to 9.1%, the fastest annual rate in 41 years, and reflects its strenuous efforts to slow price gains across the economy. By raising borrowing rates, the Fed makes it costlier to take out a mortgage or an auto or business loan. Consumers and businesses then presumably borrow and spend less, cooling the economy and slowing inflation,” the report continued. Read more