It’s been a year since the Fed’s first interest rate hike in this latest cycle to bring down inflation, and LPL Financial’s chief global strategist says “they have a ways to go.” Rate hikes have persisted in the past year, bringing the Fed’s borrowing rate up by 4.5 percentage points—its highest level since 2007. With the Fed nowhere near its 2% inflation goal, experts are expecting many more interest rate hikes and a recession on the horizon. As of Wednesday, the House passed the REIN IN Inflation Act on a bipartisan 271–148 vote. If enacted, the bill would require federal agencies to analyze the inflationary impact of executive orders. “From the student loan scam, to limiting domestic energy production, to regulatory overload, President Biden’s reckless executive actions have fueled the financial pain felt by hardworking Americans,” said House Financial Service Committee Chairman Patrick McHenry.
CNBC/Jeff Cox
A year after the first rate hike, the Fed still has a long way to go in the fight against inflation
It was a year ago this month that the Federal Reserve launched its first attack against inflation that had been percolating in the U.S. economy for at least the previous year.
That first strike, in retrospect, would seem timid: Just a quarter percentage point increase to tackle price surges which in just a few months would peak at their highest annual rate since late 1981. It wouldn’t be long before policymakers knew that initial step wouldn’t be enough.
Subsequent months saw much larger hikes, enough to raise the Fed’s benchmark borrowing rate by 4.5 percentage points to its highest level since 2007.
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Fox Business/Eric Revell
House passes bill to ‘REIN IN’ executive orders that worsen inflation
The House on Wednesday passed a bill that, if enacted, would require federal agencies to analyze the inflationary impact of executive orders issued by the president.
It comes in response to President Biden’s executive actions that critics say have worsened inflation — in particular, his cancellation of the Keystone XL pipeline shortly after taking office, his proposed $400 billion student loan handout that’s the subject of pending cases before the Supreme Court and his extensions of the pause on student loan repayments to the tune of about $5 billion per month.
You can read the full article, here.
ZeroHedge
The Top 3 Reasons The US Has Entered The Inflation Death Spiral
Rapidly rising food, housing, medical, and tuition prices are squeezing Americans, and many do not understand the real cause of their falling living standards…
That confusion opens the door for opportunistic politicians who promise supposed freebies to ease the pain of inflation. Many, unfortunately, succumb to this siren’s call.
Perverse as it is, the policies offered to people suffering from inflation create even more inflation. In other words, inflation has a way of perpetuating itself, much like a heroin addiction.
You can read the full article, here.
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