Feds Use DESPERATE Means To Fix Inflation – But Will They Take It Too Far?
(AmericanProsperity.com) – Inflation slowed to 8.5% in July, down from the June high of 9.1%. Although it’s down slightly from the previous month, it’s still a significant problem for the American people. The Federal Reserve is taking action to try to bring the rate down even more.
On August 17, the Federal Open Market Committee and Federal Reserve Board released the minutes from their July 26 and 27 meeting. Officials admitted inflation is “remaining well above” their objective. They said it’s going to need to take more restrictive steps to “promote maximum employment and price stability.” In other words, the central bank is going to raise the benchmark interest rate again.
We have posted the minutes from the #FOMC meeting held July 26-27, 2022: https://t.co/snxcbCa2Gx
— Federal Reserve (@federalreserve) August 17, 2022
The Fed already predicted it will raise the benchmark interest rate to 3.25% to 3.50% by the end of 2022. The current rate is hovering at 2.25% to 2.50%. The central bank is attempting to slow the economy to bring inflation down by increasing that figure. However, there are risks to increasing the interest rate.
The US is currently hovering close to a recession. While the National Institute of Statistics and Economic Studies (INSEE) has not officially declared the country is in a downturn, the GDP shrank for two quarters in a row under President Joe Biden. The danger is that slowing the economy too much could push it right into a recession. For now, it’s a waiting game.
~Here’s to Your Prosperity!
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