The Federal Reserve released even worse news about climbing inflation rates under the Joe Biden regime with a new warning.
In a CNBC report released Wednesday, The Fed “considerably raised its expectations for inflation this year and brought forward the time frame on when it will next raise interest rates.” It added, “However, the central bank gave no indication as to when it will begin cutting back on its aggressive bond-buying program, though Fed Chairman Jerome Powell acknowledged that officials discussed the issue at the meeting.”
According to the Daily Wire:
Officials said that increases in interest rates could come as soon as after the 2022 midterms in 2023. However, they previously said that interest rates would not increase until at least 2024.
“This is not what the market expected,” James McCann, deputy chief economist at Aberdeen Standard Investments, told CNBC. “The Fed is now signaling that rates will need to rise sooner and faster, with their forecast suggesting two hikes in 2023. This change in stance jars a little with the Fed’s recent claims that the recent spike in inflation is temporary.”
“If you’re going to get two rate hikes in 2023, you have to start tapering fairly soon to reach that goal,” Kathy Jones, head of fixed income at Charles Schwab, told CNBC. “It takes maybe 10 months to a year to taper at a moderate pace. Then you’re looking at we need to start tapering maybe later this year, and if the economy continues to run a little bit hot, rate hikes sooner rather than later.”
Larry Summers, who held top economic positions in the Clinton and Obama administrations, said, “If you looked at how the economy was coming into this year, we had total wages and salaries coming to people were 20 or 30 billion dollars a month lower because many of them had to be home because of COVID and the economy was slowed.”
He added, “The main risk is that our economy’s going to overheat.”