The Federal Reserve on Wednesday raised interest rates by another 75 basis points – or 0.75% to ‘fight’ Bidenflation.
The fed funds rate is now in the range of 3% to 3.25% – the highest since 2008.
30-year fixed rate mortgages already hit 6.25% last week.
The Dow tumbled 500 points as the Fed pledged to keep raising interest rates.
The Federal Reserve on Wednesday raised benchmark interest rates by another three-quarters of a percentage point and indicated it will keep hiking well above the current level.
In its quest to bring down inflation running near its highest levels since the early 1980s, the central bank took its federal funds rate up to a range of 3%-3.25%, the highest it has been since early 2008 following the third consecutive 0.75 percentage point move.
The increases that started in March and from a point of near-zero mark the most aggressive Fed tightening since it started using the overnight funds rate as its principal policy tool in 1990. The only comparison was in 1994, when the Fed hiked a total of 2.25 percentage points; it would begin cutting rates by July of the following year.
Along with the massive rate increases, Fed officials signaled the intention of continuing to hike until the funds level hits a “terminal rate,” or end point of 4.6% in 2023.
THE BIDEN DEPRESSION-
The Atlanta Fed predicted the GDP will have NEGATIVE growth for the third straight quarter this year.
The recession is real. Depression is increasingly likely.
The August inflation rate came in hotter than expected at 8.3%.
Democrats blew another $700 billion in a green energy spending bill and called it the “Inflation Reduction Act” in August.
Joe Biden calls this “progress.”
Federal Reserve Chairman Powell delivered remarks on interest rates: