Federal Reserve Implements Massive Interest Rate Hikes

Federal Reserve Implements Massive Interest Rate Hikes

Fed Orders DRASTIC Change – The Biggest Increase in Decades!

(RepublicanPress.org) – As inflation rates continue to spiral out of control, the government is looking for ways to bring that number down. To that end, the Federal Reserve raised its interest rate by 0.75%, the highest hike since 1994. While the federal funds rate represents the interest rate banks charge one another for lending purposes, the percentage can affect loan rates for consumers.

By raising the interest rate, the Fed is hoping to slow down spending enough to begin cooling inflation. As money becomes more expensive to borrow, consumers will theoretically buy less, thereby decreasing the demand for goods and services. A drop in demand leads to lower prices over time, which is exactly the aim of the Federal Reserve.

While it might feel painful now with the stock market reacting to the interest rate hike, the Fed must look at the big picture and get inflation under control. According to NBC News, senior economic analyst Mark Hamrick warns that too much tightening could trigger a recession, so Federal Reserve Chairman Jerome Powell needs to be careful.

Hamrick advised those carrying debt to pay it down as much as possible and save money in high-yield savings accounts for the time being, adding that long-term investors should keep moving forward.

Do you think the Fed increase will help bring inflation down?

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