UPDATE: The Federal Reserve raised interest rates three quarters of a percent for the first time since 1994. Details: https://kobi5.com/news/update-fed-hikes-interest-rates-by-3-4-percent-190065/
WASHINGTON, D.C. – As Americans feel the pinch of higher prices on everything from food to fuel, president Biden is defending his administration’s handling of the economy. Meanwhile the Federal Reserve is expected to take historic action on inflation.
The Fed is trying to get 40-year high inflation under control, fast. In an effort to tame inflation Wednesday, the Federal Reserve is expected to announce the biggest rate hike in 30 years
From the grocery store, to the gas pump, to home and rent prices, Americans are under financial stress.
To help ease inflation the Federal Reserve is expected to raise interest rates today by three quarters of a point, meaning everything from car loans to credit card payments will rise.
President Biden is trying to reassure Americans his administration is on the right track. He said, “By the end of the fiscal year, we will have cut the federal deficit by another $1.6 trillion in one year.”
The president blames higher prices in part to Russia’s war in Ukraine and the GOP for blocking his plan to fight inflation, saying, “The problem is Republicans in Congress are doing everything they can to stop my plans to bring down costs on ordinary families.”
But Republicans point to massive COVID-19 relief spending and other Democrat-backed policies.
Representative Diana Harshbarger (R-Tenn.) said, “It’s time for Biden and the Democrats to wake up and realize nothing is free. Somebody pays for it and that’s you and me as taxpayers.”
The Biden administration says it’s focused on bringing down costs.
President Biden will travel to oil-rich Saudi Arabia next month with hopes of repairing relations and driving down U.S. gas prices
The Federal Reserve has already raised interest rates twice this year
In addition to Wednesday’s expected increase, economists warn more hikes could come later this year.