{"id":1465831,"date":"2022-05-06T07:07:12","date_gmt":"2022-05-06T11:07:12","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1465831"},"modified":"2022-05-06T07:07:21","modified_gmt":"2022-05-06T11:07:21","slug":"as-the-fed-jacks-up-interest-rates-experts-warn-no-end-in-sight-to-rising-prices","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/as-the-fed-jacks-up-interest-rates-experts-warn-no-end-in-sight-to-rising-prices\/","title":{"rendered":"As the Fed Jacks Up Interest Rates, Experts Warn \u2018No End In Sight\u2019 to Rising Prices"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fas-the-fed-jacks-up-interest-rates-experts-warn-no-end-in-sight-to-rising-prices%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1465831&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><\/div>\n<p>The Federal Reserve Board\u2019s Open Market Committee voted unanimously to raise interest by half a percentage point \u2014 the largest increase in 22 years.<\/p>\n<p>But the stock market rallied when the Fed promised no 3\/4-point increases are on the way. This appeared to quiet speculation that inflation was out of control and confirm there wouldn\u2019t be any sudden large bumps in interest rates.<\/p>\n<p>After downplaying inflation for the first several months of 2021 as \u201ctransitory,\u201d the Fed is now in full crisis mode. Joe Biden and the Democrats have let slip the dogs of inflation and havoc is on the way.<\/p>\n<p><a href=\"https:\/\/www.cnn.com\/2022\/05\/04\/economy\/federal-reserve-interest-rate-hike\/index.html\" target=\"_blank\" rel=\"noopener\">CNNBusiness:<\/a><\/p>\n<blockquote>\n<p>Americans are struggling with rising costs everywhere from the grocery store to the gas pump. Keeping prices stable is part of the Fed\u2019s mandate, but so far inflation has kept creeping higher, leading some to wonder if the central banks is behind the curve with its policy.<\/p>\n<p>But Powell fought back against that point Wednesday.<\/p>\n<p>He also started Wednesday\u2019s press conference by addressing the American people, saying \u201cinflation is much too high, and we understand the hardship it is causing. We are moving expeditiously to bring it back down.\u201d<\/p>\n<\/blockquote>\n<p>Powell knows he can\u2019t just turn off inflation like water from a faucet. There\u2019s only so much the Fed can do to start repairing the damage done by Joe Biden and the Democrats.<\/p>\n<blockquote>\n<p>To tighten monetary conditions further, the central bank will\u00a0<a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20220504b.htm\" target=\"_blank\" rel=\"noopener\">also start rolling off<\/a>\u00a0its massive balance sheet, which got bloated during the pandemic.<\/p>\n<p>As of June, it will let $30 billion worth of Treasury securities and $17.5 billion worth of mortgage-backed securities run off every month between June and August, before upping these amounts to $60 billion and $35 billion, respectively, in September.<\/p>\n<\/blockquote>\n<p>Politicians and consumers alike want to know the answer to the million-dollar question: will there or will there not be a recession?<\/p>\n<p><em><strong>Related:<\/strong> <a href=\"https:\/\/pjmedia.com\/news-and-politics\/rick-moran\/2022\/04\/28\/uh-oh-u-s-economy-shrank-in-first-quarter-but-ny-times-says-all-is-well-n1593532\" target=\"_blank\" rel=\"noopener\">Uh-Oh: U.S. Economy Shrank in First Quarter, but NY Times Says \u2018All is Well\u2019<\/a><\/em><\/p>\n<p>Biden has yet to step up and admit the worst. He\u2019s hoping for a miracle to save him and his party from a historic defeat. But there is no miracle in the offing.<\/p>\n<p>Fox News contributor and The King\u2019s College executive vice president of business and economics Brian Brenberg doesn\u2019t think there\u2019s any doubt where the economy is headed.<\/p>\n<blockquote>\n<p>\u201cFood prices are at record highs: Corn, soybeans, wheat, other key input products still at record highs. Fuel still hanging at a very high level. Those two things are going to drive inflation here,\u201d Brenberg explained Wednesday on \u201c<a href=\"https:\/\/www.foxnews.com\/shows\/fox-friends-first\" target=\"_blank\" rel=\"noopener\">Fox &#038; Friends First<\/a>.\u201d \u201cI don\u2019t see a big end in sight for that.\u201d<\/p>\n<p>His comments come on expectations of a 50 basis point interest rate hike by the\u00a0<a href=\"https:\/\/www.foxbusiness.com\/category\/the-fed\" target=\"_blank\" rel=\"noopener\">Federal Reserve<\/a>\u00a0Wednesday in a move to combat soaring inflation.<\/p>\n<p>The professor cautioned decreased consumer spending motivated by increased rates will bring the economy into a recession.<\/p>\n<\/blockquote>\n<p>High prices, high-interest rates, and probably high unemployment.<\/p>\n<p>Welcome back, Jimmy Carter!<\/p>\n<blockquote>\n<p>\u201c[Businesses] stop investing, they stop hiring, which means now you\u2019re talking about a\u00a0<a href=\"https:\/\/www.foxbusiness.com\/category\/jobs\" target=\"_blank\" rel=\"noopener\">jobs<\/a>\u00a0problem,\u201d he said. \u201cJobs have been a fairly good news story in this economy, that could reverse with recession. That means wages start to fall, as well.\u201d<\/p>\n<p>Even if the Fed\u2019s\u00a0<a href=\"https:\/\/www.foxbusiness.com\/personal-finance\/federal-reserve-raises-interest-rates\" target=\"_blank\" rel=\"noopener\">first rate hike<\/a>\u00a0brings the current inflation rate down slightly, Brenberg said consumers shouldn\u2019t expect low prices at the\u00a0<a href=\"https:\/\/www.foxbusiness.com\/category\/oil\" target=\"_blank\" rel=\"noopener\">gas<\/a>\u00a0pump or\u00a0<a href=\"https:\/\/www.foxbusiness.com\/category\/food-drinks\" target=\"_blank\" rel=\"noopener\">grocery<\/a>\u00a0store.<\/p>\n<p>\u201cThe inflation started to kick in in a big way last April. So now you\u2019ve got inflation on top of inflation,\u201d he pointed out. \u201cEven if that rate comes down a little bit, it\u2019s built on previous inflation, which means people are still feeling massive price hikes.\u201d<\/p>\n<\/blockquote>\n<p>The good news is that I\u2019m pretty sure my bell-bottom pants still fit me, but my disco shirts are another story. Still, I could do without the 1980s nostalgia.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve Board\u2019s Open Market Committee voted unanimously to raise interest by half a percentage point \u2014 the largest increase in 22 years. But the stock market rallied when<\/p>\n","protected":false},"author":498,"featured_media":2315279,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1465831","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1465831","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1465831"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1465831\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1465831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1465831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1465831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}