Fed Makes a DESPERATE Move for the Country

Fed Interest Rates Hike for Fourth Month in a Row

Fed Interest Rates Hike for Fourth Month in a Row

(TheRedWire.com) – In March 2021, the US economy began to feel the sting of rising prices as the country emerged from COVID pandemic policies and strict restrictions on Americans. Since then, inflation has grown, achieving a 40-year-high for much of 2022. Starting in March, the Federal Reserve increased interest rates at six consecutive meetings. Board members have raised the prime rate three-quarters of a point four months in a row, most recently on Wednesday, November 2.

The interest rate adjustments in the last few months demonstrate the Federal Reserve’s resolve to stave off inflation and return it from 8.2% to 2%. A key benchmark, the federal funds rate, is now between 3.75% to 4%. That’s the highest it has been since the 2008 financial crisis and the most aggressive attempt to control rising prices since the 1980s.

The Fed said more increases on a smaller scale are likely to continue as it tries to curb stubborn inflation. Still, the rate increases are causing housing and manufacturing markets to slow. Tomas Philipson, the former chair of the White House Council of Economic Advisers, told Fox it’s impossible to predict the economy, much like forecasting long-term weather. Still, the Federal Reserve is attempting to cool the economy without tipping it into a recession, which many economists say is likely to occur either at the end of this year or in 2023.

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