Federal reserve chairman Jerome Powell raised interest rates .25% on Wednesday in a very week attempt to slow down the record inflation hitting the country.
This was one of the few interest rate hikes during a democrat administration. The Fed typically raises rates only for Republican presidents.
The inflation rate under Joe Biden has reached 40 year highs in recent months. This minimal interest rate hike will do nothing to slow down the runaway inflation.
Powell said the US inflation rate will take longer than expected to reach the 2% goal.
JUST IN – US inflation will ‘take longer’ to return to 2% goal: Fed’s Powell
— Insider Paper (@TheInsiderPaper) March 16, 2022
As we reported earlier — Under Bush and Trump, the Fed increased rates numerous times. Their rate increases in 2006 and 2007 helped exacerbate the 2007 housing bubble crash. Their increases in rates under President Trump almost killed the economy in 2018, the strongest economy in US history. The rates for Obama and Biden have been at zero for all their time in office with the exception of 2016, when the Fed increased the rates a quarter of a percent. Under President Trump, the Fed increased rates eight times before moving back to zero during the COVID crisis in 2020. They have remained at zero ever since.