The Fed orders another jumbo interest rate hike. Many are wondering what's next

McBride argues that in order to curb inflation, borrowing costs will likely have to remain elevated for an extended period.

"The mantra for 2023 is 'higher for longer,'" he said."When inflation's been running at 6, 7, 8% and the target is 2%, it's going to take a while."Higher borrowing costs have already put a big dent in the housing market. And. But consumers, still flush with cash saved up early in the pandemic, continue to spend money. As a result, the Fed may have to tap the brakes harder, for longer, than it otherwise would.

"We see today that there is a bit of a savings buffer still sitting for households, that may allow them to continue to spend in a way that keeps demand strong," said Esther George, president of the Federal Reserve Bank of Kansas City."That suggests we may have to keep at this for a while." Like her colleagues on the Fed's rate-setting committee, George has expressed a determination to control inflation. But she's also cautioned against raising rates too rapidly at a time of economic uncertainty.

"I have been in the camp of steadier and slower [rate increases], to begin to see how those effects from a lag will unfold," George said last month."My concern being that a succession of very super-sized rate hikes might cause you to oversteer and not be able to see those turning points.", the Biden administration and most members of Congress have stayed out of the Fed's way as it tries to control prices.

Your tweet was quoted in an article by blogtown

If you/we are against corporate greed, you/we should stop buying from greedy corporations. It’s that simple. Sell your iPhone, ride the bus (better yet, ride a bike or walk), stop eating at fast food joints. Money talks in todays world. Spend wisely

So now no one will take out a loan for a car or a mortgage and just hang on to their money causing this issue to continue. Plus, rampant, unfettered Corporate Greed & Price Gouging.

Ex billionaires and millionaires are gonna be line outside the office with pitchforks

Thanks Biden...lol. get rid of these fools.

Remarkably, my interest is at an all time low.

Why is no one talking about the absolute refusal to increase production? There has been an intentional decrease in ALL aspects of production.

WllliamC I certainly hope they are way way smarter than I am but they seem to not take the price gouging into account. Or maybe I missed that. With the recent COVID supply chain issues and the determination of big oil and food companies among others this is a different inflation.

To the moooooon

Good grief

This was fact checked wrong. The WH took it down. You should too

Problem is not households with an assumed large cash savings spending more because they want to. Part of it is scarcity and paying more to get something, the rest of corporate greed. Should not be seeing record breaking profits if just responding to shipping and material costs.

You can't chip away at human greed which causes inflation unless you change the body of law that allows it. Raising the interest rate is going to do nothing but cost the consumer more than they are willing to pay.

Just another excuse to squeeze more out of the working people of this country instead of the rich and price-gouging corporations. The Fed works FOR the robber-barons.

DANGER WILL ROBINSON! DangerWillRobinson

'Dramatically '? So dramatic when everybody and their brother has been anticipating a 0.75% increase for literally months now.

Can’t the democrats just push through another 40 billion dollar handout bill? sarcasm

FloodTheZoneRed 🇺🇸❣️🇺🇸 OwnTheLibs ❗️❗️❗️ Vote GOP

'Do something about inflation!!' Does something about inflation 'Wait, not that!!'

This only effects the little guy… corporations and elites continue to squeeze every penny out of us to save the country while they buy yachts and elections 🤦🏽‍♂️ fucking pathetic… how about the FED and the GOVERNMENT actually raise the taxes on the rich and corporations instead 🤦🏽‍♂️

Did they stop printing money for the govt? Inflation

Fucking hell. They really want to up the unemployment numbers.

Seeing as how most of what we call 'inflation' is caused by corporations jacking up prices to increase their profit margins, I'd say this is BS. And the Fed knows that. If you want to chip away at inflation, tax corporate profits. The higher the profits, the higher the tax.

Bitcoin

👎🏻Dies not help the working class-they need to borrow money just to survive😖

Why is it dramatic? We knew this was coming just like the two times before.

You mean the tax break trump passed that we have to pay back

Inflation is being fueled by profit-taking and this won't stop it. Only a windfall profits tax will.

It's not inflation, it's corporate price gouging. Mega-companies are making record profits, and the federalreserve is punishing middle-class Americans for it.

While foretelling it will relax backpressure...

Dramatically? It was the expected increase?

'Jumbo'?

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