BIDEN ECONOMY: The FED Increases Rates by a Half a Percent – The Largest Increase for a Democrat White House This Century

Things were bad for the Biden economy – now they just got worse.   The FED announced that they are raising rates a half a percent.  

This afternoon the FED increased the short-term interest rate by .5 of a percent.

The Federal Reserve intensified its fight against the worst inflation in 40 years by raising its benchmark short-term interest rate by a half-percentage point Wednesday — its most aggressive move since 2000 — and signaling further large rate hikes to come.

The increase in the Fed’s key rate raised it to a range of 0.75% to 1%, the highest point since the pandemic struck two years ago.

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The Fed also announced that it will start reducing its huge $9 trillion balance sheet, which consists mainly of Treasury and mortgage bonds. Those holdings more than doubled after the pandemic recession hit as the Fed bought trillions in bonds to try to hold down long-term borrowing rates. Reducing the Fed’s holdings will have the effect of further raising loan costs throughout the economy.

All told, the Fed’s credit tightening will likely mean higher loan rates for many consumers and businesses over time, including for mortgages, credit cards and auto loans. With prices for food, energy and consumer goods accelerating, the Fed’s goal is to cool spending — and economic growth — by making it more expensive for individuals and businesses to borrow. The central bank hopes that higher borrowing costs will slow spending enough to tame inflation yet not so much as to cause a recession.

The FED announced that they are raising rates today by one-half a percent.  This is the largest rate increase under a Democrat in the White House since sometime before 2000.

Things are so bad the Democrat Media complex is encouraging Americans to get a second job.

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