The United States Federal Reserve has announced its biggest rate hike since 2000, with a half percentage point increase as it works to crush soaring US inflation.With inflation at the highest rate in four decades, Federal Reserve Chair Jerome Powell on Wednesday sent a message directly to the American people, expressing concern for the pain caused by rising prices, and pledging to use all available tools to bring them down.
The hike will raise the costs of all types of borrowing, from mortgages to credit cards to car loans, cooling demand and business activity. He acknowledged that higher interest rates also bring their share of pain, but "everyone would be better off if we can get this job done. The sooner, the better."
"It's a strong economy, and nothing about it suggested... that it's close to or vulnerable to a recession," he said.But with China's pandemic lockdowns worsening global supply snarls and the war in Ukraine pushing commodity prices higher, analysts fear factors beyond the central bank's control could undermine that goal, and perhaps plunge the US economy into a recession.
However, central bankers cannot engineer a solution for the worker shortages that have challenged businesses and raised fears of a wage-price spiral, when employees demand higher salaries and fuel price increases.
Biden inflation.
Millions of Australian watched the election fraud in the US completely clueless how that will come back to Australia. Now. You. See. It