Click here to view original web page at nypost.com
Fed Chair Jerome Powell is under pressure to tamp down inflation. The Federal Reserve implemented the largest hike to its benchmark interest rate since 1994 on Wednesday as officials frantically seek to tamp down the decades-high inflation hitting household budgets.
The rate-making Federal Open Market Committee announced the hike of 0.75%, or 75 basis points, at the conclusion of their two-day meeting. The hike moved the benchmark short-term rate to a range of 1.5% to 1.75%.
“Job gains have been robust in recent months, and the unemployment rate has remained low,” the FOMC said in a statement. “Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.”
The 0.75% hike was in line with revised expectations after last week’s release of the Consumer Price Index for May . The federal data showed inflation accelerated to a higher-than-expected 8.6% last month, the sharpest rate since December 1981.
Wall Street had long anticipated another half-percentage-point hike – but the mood changed after a report surfaced that economic officials could implement an even larger increase due to alarming inflation data.
While a 0.75% became the consensus view, some, including hedge fund billionaire Bill Ackman, suggested the economy would be better served if the Fed took drastic action by implementing a 1% hike. Investors are skeptical that the Fed will be able to engineer a soft landing for the economy. Motorists have encountered record-high gas prices across the country over the last month as the national average surpassed an unprecedented $5 per gallon. Other necessities such as groceries and housing have also surged to their highest level in years.
Interest rate hikes make it more expensive for consumers and businesses to borrow money. The Fed is aiming to cool the economy and bring down inflation without tipping the country into […]
We Often Feel Like David Taking on Giants
Today’s Goliath is the Mainstream Media Industrial Complex that brainwashes the masses.
Our mission is very straightforward: To counter the false narratives and nefarious agendas destroying America today. It isn’t easy for obvious reasons; despite incredible growth over the last year we are still a very tiny fish in a huge media pond. But we’re fighting and we will continue to do so, Lord willing, for as long as we possibly can. The battle for America’s present and future is too important for us to back down to the giants that stand in our way.
We need help. I don’t want to say “desperately,” but the need is definitely great. If you have the means, please donate through our GivingFuel page, PayPal, or our Substack page. Your generosity is what keeps these sites running and allows us to get the truth to the masses. We’ve had great success in growing but we know we can do more with your assistance.
Thank you, and God Bless!
JD Rucker