It looks as though Joe Biden is about to get a bailout once again.
After spending weeks and weeks attempting to convince the nation that an economic recession is not inevitable, Joe Biden’s economy is still struggling to accommodate the needs of most Americans. Prices are skyrocketing across the board, and there are experts across the board warning that trouble is still looming just over the horizon.
That’s why the Federal Reserve is making such desperate moves.
The Federal Reserve on Wednesday enacted its second consecutive 0.75 percentage point interest rate increase as it seeks to tamp down runaway inflation without creating a recession.
In taking the benchmark overnight borrowing rate up to a range of 2.25%-2.5%, the moves in June and July represent the most stringent consecutive action since the Fed began using the overnight funds rate as the principal tool of monetary policy in the early 1990s.
It’s been nearly half a decade since the rates were this high.
While the fed funds rate most directly impacts what banks charge each other for short-term loans, it feeds into a multitude of consumer products such as adjustable mortgages, auto loans and credit cards. The increase takes the funds rate to its highest level since December 2018.
As the nation emerged from the stagnating forces of the coronavirus pandemic, many believed that we would be headed toward a new wave of American prosperity.
As it turns out, Joe Biden seems to have, perhaps inadvertently, made other plans.
