The Fed walking a tightrope! 🐘🎪🔥
Image Source: The incredible Dall-E2
The US Federal Reserve just raised the interest rate by another 50 basis points in an effort to curb inflation and address the current economic downturn that kicked off when the US officially went into a recession last summer. The decision which was announced yesterday sent the benchmark interest rate to the highest level in 15 years, sending stocks, crypto, & other asset prices plunging over the cliff of worry as more inflation fears were re-ignited.
The chart below shows all the US Recessions in the past since 1970, with the latest one beginning in the summer of 2022!
Source: St. Louis Fed
The Fed's delicate balancing act!
According to Federal Reserve Chairman Jerome Powell, the decision to raise rates was not taken lightly, as it is a delicate balancing act that must be carefully considered in order to avoid damaging the economy further.
Image Source: The incredible Dall-E2
"We are walking a tightrope between the need to support the economy and the need to address rising inflation," Powell said in a press conference.
The decision to raise interest rates comes as the US economy continues to recover from the impact of the COVID-19 pandemic. While the vaccines being rolled out have helped to bring the pandemic under control, the economic recovery has been "shotty", with some sectors experiencing a rebound while others continue to struggle.
The Federal Reserve believes that raising interest rates will help to curb inflation by slowing down the rate of economic growth and reducing the demand for goods and services. This should help to keep prices from rising too quickly, which can be harmful to the economy as it can erode the purchasing power of consumers.
It looks like the Fed's Policy is working as working to curb prices, as can be seen on this chart below!
Source: bls.gov
However, the decision to raise interest rates is not without its risks. Higher interest rates can make borrowing more expensive for businesses and consumers, which can dampen economic activity and slow down the recovery. It is a delicate balance that the Federal Reserve must navigate in order to achieve the desired results without causing undue harm to the economy.
Overall, the Federal Reserve's decision to raise interest rates is a carefully calculated move that is aimed at addressing the current economic challenges facing the country. While it may have some short-term impacts, it is ultimately designed to help the economy recover and return to a more stable and sustainable path of growth.
What do you think about the Fed walking a Tightrope? Is the current monetary policy helping or Hurting your economy? If you were in charge would you do anything differently? Please leave your comments below:
Congratulations, @coininstant Your Post Got 100% Boost.
@helios.voter Burnt 83.91 HELIOS & We Followed That Lead.
Contact Us : HELIOS Token Discord Channel
You reckon that economic collapse could happen later next year?! 🙀
Oh no, not at all. I think everything will get back to normal by next summer, we're seeing the worst of it now.
Oh! Great news! I read some analysts were warning about economic collapse next year. It’s better that bad stuff would never come true!
Yeah like Elon says, it's best to firewall all that negative fud out of your mind. Things are great, they are better than ever, and the planet is on the verge of a Nuclear Fusion Revolution that's going to be supplying the world with a nearly limitless source of clean, carbon-free energy very soon.
By 2030 we're going to see the greatest golden age mankind has ever seen. This new Fusion discovery was just announced days ago, scientists shoot the atoms with powerful lasers and 50% more energy comes out, the implications of this are mind-boggling.
The price of oil and electricity will go way down in the future, inflation won't be an issue anymore, and the environment will be saved from our old destructive & dirty energy ways.
The people in control of the world know a big change is coming for the better, so they are making some last big dips, and as much fear as possible so they can buy up all the assets as cheaply as possible before they go to the moon.
I predict that btc will be surpassing one million dollars a coin in the 2030s due to Nuclear Fusion's ability to reduce the cost of mining and make it more economically viable & increasing profitability.
Wow! Thanks so much for sharing this! I heard about nuclear fusion years ago; I didn’t realise the progress scientists have made during the years.
I also believe that Bitcoin will go way higher than most people have expected. Meanwhile the dirty games go on with other shenanigans.
There’s plenty of natural resources and food to feed the whole world. Politics gets in the way of understanding and sharing among fellow human beings.
Greyscale is at a huge discount, should signal that the bear market is not over yet.
Richard Heart predicts that the bear market is not over.
Posted using LasseCash
If Richard Heart couldn't predict that some HEX influencers would be subpoenaed by the U.S. Securities and Exchange Commission he probably can't predict the market. Maybe trust someone who isn't a scammer promoting shitcoins?
well, i hope cut off the finger to save the hand works here..
!BEER