When the US Federal Reserve embarked on an aggressive campaign to quash inflation last year, it did so with the goal of avoiding a painful repeat of the 1970s, when inflation spun out of control and economic malaise set in.
The Federal Reserve voted unanimously to raise interest rates by a quarter point Wednesday, the tenth rate hike since the central bank started its battle against inflation last March.
US consumers are starting to feel that credit is getting harder to come by, according to survey results released Monday by the Federal Reserve Bank of New York.
In the wake of Silicon Valley Bank’s collapse and subsequent banking meltdown, cash is king. The turmoil inflicted on financial markets has sent cautious investors running away from volatile markets and toward more liquid alternatives.
Investors are worried that the Fed will also continue to act, even though there is already evidence that consumers are starting to feel a one-two punch from higher prices and higher interest rates.
[bc_video video_id=”6087571132001″ account_id=”5728959025001″ player_id=”Hkbio1usDM” embed=”in-page” padding_top=”56%” autoplay=”” min_width=”0px” max_width=”640px” width=”100%” height=”100%”] For the second time since the recession, Federal Reserve Chair Jerome Powell announced an interest rate cut. “We took this step to help keep the U.S. Economy strong in the face of some notable developments and to provide insurance against ongoing risks,” said […]
