For the first time since 1994, the Federal Reserve raised rates by three-quarters of a percentage point on Wednesday for the inflation and the economic crisis we are facing in the United States. Prices continue to surge along with skyrocketing gas prices. The Fed wants to prove that it can gain control of inflation without sending the US economy into a recession.
The Fed's mission to balance high employment with low prices is that the central bank sometimes needs to slow down the US economy.
Federal Reserve chairman, Jerome Powell, said, "The Fed is doing what it can to bring prices down, but it isn't completely in control."
US President Biden said on Friday, "We’re gonna live with this inflation for a while... It’s gonna come down gradually, but we’re going to live with it for a while." US stocks jumped on Wednesday afternoon after this historical announcement, NASDAQ increased by 2.5%, and other stocks such as S&P 500 increased by about 1.5%.
This is TNN, and this is not Financial Advice... Cya tomorrow!