The Ongoing Failures of the Biden Administration and the Federal Reserve
Citing inflation, the United States Federal reserve has raised its base interest rate by 0.5% in addition to selling off its balance sheet of trillion of dollars.
This rate hike has been the biggest since May of 2000 under the fantasy that it will tackle the current, and upward going, inflation rate of 8.5%. If you believe this I have a bridge to sell you.
Fed chairman Jerome Powell was quoted as saying, “Inflation is much too high.” Really Mr. Powell? Is the failed economic policy of the Biden administration that has pushed inflation to an all time high, this is not rocket science.
Powell’s comments come with a caveat. He stated the policies “can only impact the demand side of things and not supply disruptions.” Yes, because supply disruptions are also the result of the Biden administration lack of planning and their ridiculous shutdown of our economy over a virus with a mortality rate lower than the seasonal influenza.
Powell went on to blame the supply issues on China’s Covid-19 lockdowns and the Ukrainian conflict. First, we have been living with Covid for the last two years, secondly, supply chain issues were in place long before the start of the Ukrainian conflict.
He admitted the rate hike may cause short term unemployment, but the fact is people are quitting their jobs. After two years of sitting at home and working remotely, employees are refusing to return to work and instead are resigning.
When government pays you better wages to sit at home than to actually produce something to earn it, some people are going to abuse it.
He stated, “the labor market is extremely tight.” Folks, the labor market is tight because people are refusing to return to work, period. With 11.9 million jobs available and only 6 million Americans looking for work, even with Common Core mathematics the numbers do not lie.
“There may be some pain for Americans.” That is an understatement.
Americans have been in financial pain since the Biden administration took over. The proof is clear, from higher energy prices to empty shelves at the grocery stores. Americans have been put in a position to choose between feeding their families or filling up their vehicles to go to work.
What this rate hike is going to do? Nothing! Is going to put more stress on everyday Americans. By raising interest rates on credit cards, making it harder for first time home buyers to afford a home, and food prices skyrocketing as supplies continue to shrink, choices are going to be tight.
The Federal Reserve will continue to raise interest rates until they hit their target of 2% inflation. We are at 8.5% and rising, this goal is unrealistic and actually will cripple American families even more so.
Meanwhile the democrats believe abortion is the thing that keeps Americans awake at night. This is Banana Republic economics, and it is going to get worse before it gets better.