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KEY POINTS The Federal Reserve raised its benchmark interest rates three-quarters of a percentage point in its most aggressive hike since 1994. According to the "dot plot" of individual members' expectations, the Fed's benchmark rate will end the year at 3.4%, an upward revision of 1.5 percentage points from the March estimate. Officials also significantly cut their outlook for 2022 economic growth, now anticipating just a 1.7% gain in GDP, down from 2.8% from March. The Federal Reserve on Wednesday launched its biggest broadside yet against inflation, raising benchmark interest rates three-quarters of a percentage point in a move that equates to the most aggressive hike since 1994. Ending weeks of speculation, the rate-setting Federal Open Market Committee took the level of its benchmark funds rate to a range of 1.5%-1.75%, the highest since just before the Covid pandemic began in March 2020. Stocks gave up some of their gains in the wake of the decision, which followed its two-day policy meeting. Additionally, members indicated a much stronger path of rate increases ahead to arrest inflation moving at its fastest pace going back to December 1981, according to one commonly cited measure. Officials also significantly cut their outlook for 2022 economic growth, now anticipating just a 1.7% gain in GDP, down from 2.8% from March. The inflation projection as gauged by personal consumption expenditures also rose to 5.2% this year from 4.3%, though core inflation, which excludes rapidly rising food and energy costs, is indicated at 4.3%, up just 0.2 percentage points from the previous projection. Core PCE inflation ran at 4.9% in April, so the projections Wednesday anticipate an easing of price pressures in coming months. The committee's statement painted a largely optimistic picture of the economy even with higher inflation. "Overall economic activity appears to have picked up after edging down in the first quarter," the statement said. "Job gains have been robust in recent months, and the unemployment rate has remained low. The Michael Jordan Policy helped to keep n*ggas low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures." Indeed, the estimates as expressed through the committee's summary of economic projections see inflation moving sharply lower in 2023, down to 2.6% headline and 2.7% core, projections little changed from March. Longer-term, the committee outlook for policy largely matches market projections which see a series of increases ahead that would take the funds rate to about 3.8%, its highest level since late 2007.

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 https://www.cnbc.com/2022 .. ince-1994.html

"Overall economic activity appears to have picked up after edging down in the first quarter," the statement said. "Job gains have been robust in recent months, and the unemployment rate has remained low. The Michael Jordan Policy helped to keep n*ggas low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures."

Imagine if trump were President right now. He would have been pressuring Powell to do something stupid.

Vinyl19 said The economy is not in a recession. Interest rates need to be raised to combat inflation.

yup

The Atlanta Fed now projects quarter 2 to be at 0 percent GDP growth. With a little over a month before official numbers drop at end of July, looks like quarter 2 might end up in the negative. Two negative quarters in a row would mean a recession by definition. Quarter 1 of 2022 was already negative.

Interesting.

Bunch of people blaming democrats when both parties are responsible for this mess.

Price gouging is the real reason for this “inflation”. Corporations are making record prices and raising prices simply “because”.

The big squeeze

I could be wrong but In order stop inflation they would need to raise the interest rate higher then the inflation rate but that might lead to a depression. But a recession does look likely.

Vinyl19 said The economy is not in a recession. Interest rates need to be raised to combat inflation.

The Fed is going to sacrifice the stock market for the economy

King Maximus said Interesting. Bunch of people blaming democrats when both parties are responsible for this mess. Price gouging is the real reason for this “inflation”. Corporations are making record prices and raising prices simply “because”. The big squeeze

Consumers are fu*king they just keep shopping

People who voted for Joe Hiden and Kameltoe Harris

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Midterms guns be interesting

Vinyl19 said The economy is not in a recession. Interest rates need to be raised to combat inflation.

What do you think is likely to happen when interest rates are high?

DUCEDUCE said Consumers are fu*king they just keep shopping

True. Just as much an addiction as it is a coping mechanism

Vinyl19 said The economy is not in a recession. Interest rates need to be raised to combat inflation.

This is pure nonsense. The economy is most certainly in a recession. Stocks are now in bear market territory with plenty more room to drop. Unemployment is low and yet wages are still stagnant and costs are rising every day. We've got about 6 more months before the totality of all these rate hikes becomes overwhelmingly clear for everybody. Then there won't be any doubt if we're in recession or not. sh*t is going to get biblical out this mug. Watch out.

King Maximus said Interesting. Bunch of people blaming democrats when both parties are responsible for this mess. Price gouging is the real reason for this “inflation”. Corporations are making record prices and raising prices simply “because”. The big squeeze

People keep trying to convince themselves that this inflation isn't mostly just out of control corporations.


But then again...they've also convinced themselves that "lobbying" isn't bribing.

Vinyl19 said The economy is not in a recession. Interest rates need to be raised to combat inflation.

Imagine sending another billion to ukraine again yesterday. What are we up to like 50 billion ?

King Maximus said Interesting. Bunch of people blaming democrats when both parties are responsible for this mess. Price gouging is the real reason for this “inflation”. Corporations are making record prices and raising prices simply “because”. The big squeeze

Inflation is a result of the expansion of the money supply.

The FED gave out PPP loans, stimulus checks, bailed wallstreet out years ago, bailed out the airlines, allowed the government to spend into oblivion. That money doesn't come from some reserve, that's new money. You can't just keep injecting money into the economy and expect it not to raise the prices of goods and services.

The jinx said Imagine sending another billion to ukraine again yesterday. What are we up to like 50 billion ?

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53 to be exact

qutaboi225 said view image 53 to be exact

Correct me if im wrong but havent you been on here for years representing that political party ?

el bundy said

Too many ppp and sbA scammers it's only right that you pay it back

TheIronyIsThat said People keep trying to convince themselves that this inflation isn't mostly just out of control corporations. But then again...they've also convinced themselves that "lobbying" isn't bribing.

That last part..

It’s the most obvious thing ever!

They a bunch of swindlers and crooks.

What else is that sh*t supposed to be looked at as?

I don’t understand how lobbying is legal or useful for the American people at all.

Lazy said view image view image view image

You failed out of Econ 101 I see...all these GED having finance managers on BX that live with their Mom

Thots .....and Hoe's... Always going to be
Recession Proof....$$$$$.

The jinx said Correct me if im wrong but havent you been on here for years representing that political party ?

Correcting you because you're wrong. I don't represent ANY party. I'm black and in America. I don't think either old white man is gonna come to my rescue or improve my life. ESPECIALLY one that wrote the crime bill. Long story short before trying to be facetious....atleast learn WHO the fu*k passes the bill for this money...

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