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Fed indicates action needed against inflation, ready to pump brakes on economy

by Liberty Loft News
February 25, 2022
in Economy, Government, US News
Fed, Federal reserve, interest rates, inflation, spending,

WASHINGTON — In a new document released on Thursday, it seems the Federal Reserve is ready to act against inflation in the US. That is, they are ready to take measures to put brakes on the economy.

As if the Democrats coronavirus measures and proposed spending plans were not enough, the Fed appears poised to start raising interest rates in an effort to slow down the US economy. Reuters reported the release.

The idea is that through raising the interest rate, it will cause the US economy to restrict and help tighten labor markets and business across the country. It will increase the costs of doing business across the country and for consumers looking to borrow money for things such as homes.

As the prices go up, the investment by those businesses will go down, causing them to stop looking for additional help. But will that solve the problem?

The stock markets dropped at the news. Rising fed rates are bad for stocks and investors know it. They determined to take their profits and get out as quick as they could.

It seems the move is more about market manipulation than truly addressing inflation. If the radical left was truly interested in addressing inflation, would they not reduce spending and attempt to cut costs?

Instead, the government will take the cost to American businesses and consumers, forcing them into a government-created recession.

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