In the name of bringing down inflation, the Federal Reserve is continuously raising interest rates. According to the central bank, higher interest rates will reduce economic demand and therefore lower inflation.
Unfortunately, this is not panning out so well. Inflation still remains a crushing force in the lives of many Americans. Meanwhile, as interest rates increase, credit card bills, mortgages, and car payments are becoming more expensive.
Sadly for the everyday American, it has been confirmed that the Federal Reserve plans to continue with more interest rate hikes.
What Every American Should Know Going Forward
This week, the Federal Reserve is set to once more push up the interest rate in the name of lowering inflation. Critics of these rate hikes continue to warn they will very likely trigger a recession. Though the Federal Reserve is not letting these warnings stand in their way.
During this go-round, the interest rate hike is expected to occur by 0.75%. Then, in December and onward, the Federal Reserve is expected to keep moving up interest rates.
JUST IN: Goldman Sachs expects the Federal Reserve to raise interest rates as high as 5% by March 2023.
— Watcher.Guru (@WatcherGuru) October 30, 2022
So far, the central bank alleges that it will need to see clear evidence of inflation decreasing before it stops increasing interest rates. Though so long as the federal government continues to spend money without abandon, inflation will not go down.
At the rate things are going, the United States could find itself battling a serious recession next year.
Only in Biden’s America
When it comes to current economic problems and future ones to come, the responsibility lies with not just the Biden administration, but also with left-wing lawmakers who enabled the president.
Republicans consistently warned that passing spending bills would only make the economy worse and drive up inflation.
Biden did not listen. Instead, he colluded with Democratic members of the House and Senate to pass the American Rescue Plan and Inflation Reduction Act without a single GOP vote.
A Pennsylvania voter on the economy:
“It wasn’t like that before Biden took over.”
— The Post Millennial (@TPostMillennial) October 27, 2022
These bills are significant catalysts for current and future issues with inflation.
If Democrats aren’t removed from power in Congress, they will continue using their majority to pass more expenditures. Inflation will then rise, leading the Federal Reserve to continue bumping up interest rates.
The only hope of breaking this vicious cycle is restoring fiscal responsibility to the federal government. This means ensuring that Republicans take back Congress next Tuesday.
