Fed raises interest rate by 75-basis points in historic move to fight inflation

[Guard Dad]

Admittedly, I'm not the guru some are, but I think this is a mistake.

Historically, inflation is because of an overheated economy. The Feds raise interest rates to slow the economy and ease inflation.

This time, it's different. Inflation is because of Biden's energy policies, government spending, supply chain issues, etc. The economy is NOT overheated. But the interest rate hikes will still slow the economy, and likely throw us into recession. And I have my doubts this will even address the cause of this inflation.

Fed raises interest rate by 75-basis points in historic move to fight inflation

The Federal Reserve on Wednesday approved the largest interest rate hike since 1994 as officials try to tame runaway inflation, which surged to another 40-year high in May.

www.foxbusiness.com

 

[Boss 302]

Admittedly, I'm not the guru some are, but I think this is a mistake.

Historically, inflation is because of an overheated economy. The Feds raise interest rates to slow the economy and ease inflation.

This time, it's different. Inflation is because of Biden's energy policies, government spending, supply chain issues, etc. The economy is NOT overheated. But the interest rate hikes will still slow the economy, and likely throw us into recession. And I have my doubts this will even address the cause of this inflation.

Fed raises interest rate by 75-basis points in historic move to fight inflation

The Federal Reserve on Wednesday approved the largest interest rate hike since 1994 as officials try to tame runaway inflation, which surged to another 40-year high in May.

www.foxbusiness.com

Did inflation decrease the previous two times the rates were raised? No. Inflation never decreased when the Carter administration used this same tactic to curb inflation. Instead, inflation continued to increase. It only stopped increasing after Reagan was in the WH.

 

[cptlo]

The now even higher mortgage rates are going to hurt the housing market. Granted, the housing market has been crazy for the last year or two, so cooling off some may not be that bad, but the higher interest rates are definitely having a negative impact.