{"id":1654494,"date":"2022-09-23T07:37:57","date_gmt":"2022-09-23T11:37:57","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1654494"},"modified":"2022-09-23T07:38:17","modified_gmt":"2022-09-23T11:38:17","slug":"the-federal-reserve-has-some-very-bad-news-for-biden-and-the-democrats","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-federal-reserve-has-some-very-bad-news-for-biden-and-the-democrats\/","title":{"rendered":"The Federal Reserve Has Some Very Bad News for Biden and the Democrats"},"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\">26<\/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%2Fthe-federal-reserve-has-some-very-bad-news-for-biden-and-the-democrats%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=1654494&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>On Wednesday, the Federal Reserve Board\u2019s Open Market Committee (FOMC) raised its federal funds rate by 75 basis points \u2014 the third consecutive month the Fed has raised the rate by 75 points.<\/p>\n<p>But the Fed admitted that its policies weren\u2019t doing anything to slow inflation and promised more big rate increases in the future. The FOMC said its goal was to raise the federal funds rate to 4.40 percent by the end of the year before maxing out at 4.6 percent next year.<\/p>\n<p>More worrisome for Joe Biden and the Democrats are economic projections that show growth slowing to a crawl through 2024.<\/p>\n<p><a href=\"https:\/\/freebeacon.com\/latest-news\/federal-reserve-predicts-economy-will-slow-to-a-crawl-hikes-interest-rate-again\/\" target=\"_blank\" rel=\"noopener\">Washington Free Beacon:<\/a><\/p>\n<blockquote>\n<p>The U.S. central bank\u2019s quarterly economic projections, meanwhile, showed the economy slowing to a crawl in 2022, with year-end growth at 0.2%, rising to 1.2% in 2023, well below the economy\u2019s potential. The unemployment rate, currently at 3.7%, is projected to rise to 3.8% this year and to 4.4% in 2023. Inflation is seen slowly returning to the Fed\u2019s 2% target in 2025.<\/p>\n<p>Rate cuts are not foreseen until 2024.<\/p>\n<\/blockquote>\n<p>That\u2019s if everything breaks right and the war in Ukraine is ended without blowing up the world, and no other economic shocks \u2014 like a default of a major European economy \u2014 occur.<\/p>\n<p><a href=\"https:\/\/www.nationalreview.com\/corner\/the-fed-sees-more-trouble-ahead\/\" target=\"_blank\" rel=\"noopener\">NRO\u2019s Dominic Pino<\/a> thinks the Fed is being overly optimistic.<\/p>\n<blockquote>\n<p>Meanwhile, nominal spending continues to be above-trend. The elected parts of government are spending recklessly, and fiscal policy is working against monetary policy. Under these circumstances, the Fed will need to continue to raise rates.<\/p>\n<p>Thus the major difference between the FOMC\u2019s June projections and the ones it released today: In June, members thought the federal-funds rate would be 3.8 percent next year and 3.4 percent in 2024. Today, they think it will need to be 4.6 percent next year and 3.9 percent in 2024, which means accelerating increases through next year with the hope of beginning to cut in 2024.<\/p>\n<p>This is not very promising.<\/p>\n<\/blockquote>\n<p>No, it\u2019s not. And the political implications are worrisome for the Democrats. Those rates will begin to come down in 2024 *if* Congress and Joe Biden can get a handle on spending. And there\u2019s nothing that\u2019s been said or done by either the president or Congress that would lead anyone to believe that the thought of reducing federal spending even crossed their minds.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Wednesday, the Federal Reserve Board\u2019s Open Market Committee (FOMC) raised its federal funds rate by 75 basis points \u2014 the third consecutive month the Fed has raised the rate<\/p>\n","protected":false},"author":1,"featured_media":1654496,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1654494","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\/1654494","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1654494"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1654494\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1654496"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1654494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1654494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1654494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}