The Fed under Jerome Powell is trying to worm its way out of the disaster it cooked up. Karma has finally hit the Fed.
Under President Trump, Fed Chief Jerome Powell raised the rates so much that he almost created a market collapse himself. President Trump had the economy smoking and Powell couldn’t let that happen so he raised rates quarterly for President Trump’s first couple of years. Had Powell left the rates alone, the US economy would have been even better.
Under Obama, the Fed kept the rates at 0% for 7 years helping Obama’s economy. Yet none of that with President Trump. Who says the Fed is not political?
Under Biden, inflation is at 40-year highs. It hasn’t reached this high since the Jimmy Carter years. The only way to combat inflation is to raise rates, so reluctantly the Fed has raised rates to attempt to stop inflation, but they have a long way to go. Massive government spending and giveaways under the Biden gang are destroying the economy coupled with energy-crushing initiatives.
US News and World Report shared this morning on the Fed’s expected action today.
Decision day is here for the Federal Reserve and here is the spoiler alert: The central bank will raise interest rates once again.
The only question is whether it will be a 75 basis point hike, or something larger, with most analysts agreeing the former is the most likely course. And what Fed Chairman Jerome Powell says about the future outlook for inflation and interest rates will also be closely watched.
“The rate increase itself is fully incorporated into markets,” Brad McMillan, chief investment officer for Commonwealth Financial Network, wrote on Tuesday. “Don’t expect much, if any, reaction from a 75-point decision. If we get a 100-point decision, that might generate some market reaction.”
Reuters reported yesterday:
With the Federal Reserve expected to hike its key interest rate by three-quarters of a percentage point on Wednesday to battle high inflation, focus will shift to how deeply signs of a possible economic slowdown have registered with its policymakers.
We’ll see what Powell does. They sure hate to raise rates during Democrat administrations.