Forward by Bob Barney
These are the facts folks: Our economy is like a freight train careening fully out of control. We can thank the Federal Reserve for this as they have run out of every option at this point to stop the inevitable. Interest rates keep rising and is eventually going to cause a great recession if not a depression. What does that look like? People running out of money…especially small businesses. When we have rates at 12 and 15, and then 18% for prime…yes, we are looking at some massive casualties.
BY CHRISTOPHER RUGABER
WASHINGTON (AP) — The Federal Reserve raised its key interest rate Wednesday for the 11th time in 17 months as part of its ongoing drive to curb inflation. But it provided little guidance about when — or whether — it might hike rates again.
Wednesday’s move raised the Fed’s benchmark short-term rate from roughly 5.1% to 5.3% — its highest level since 2001. Coming on top of its previous hikes, the Fed’s latest action could lead to further increases in the costs of mortgages,auto loans, credit cards and business borrowing.
Speaking at a news conference, Fed Chair Jerome Powell was noncommittal about any expectations for future rate hikes. Since it began raising rates in March 2022, the Fed has often telegraphed its upcoming action. This time, though, Powell said the Fed’s policymakers may or may not raise rates again at their next meeting in September.
“It is certainly possible that we will raise rates again at the September meeting,” he said. “And I would also say it’s possible that we would choose to hold steady at that meeting.”