US Fed Raises Interest Rates Another 0.75%

    Photo: Getty Images [via New York Post]

    The Facts

    • Citing continued inflation, supply and demand issues, and food and energy prices, the US Federal Reserve (Fed) announced on Wednesday that it's raising rates by another 0.75%, bringing the central bank's benchmark rate to the 3.75% - 4% target range.

    • The bank also signaled plans for further hikes, though likely in smaller increments, with major US stock indexes falling in the wake of the announcement. At the center of market valuation reactions was a more than 3% drop in the Nasdaq Composite.

    The Spin

    Republican narrative

    While even Democrats like Elizabeth Warren continue to point out the Fed's failed interest rate plan, Jerome Powell is still pushing ahead despite the inevitable job loss it will cause. All the while, the White House keeps making empty statements about "stable and steady growth" as their constituents face a devastating economy.

    Democratic narrative

    Though many may not remember, the economic crisis of the early 1980s saw inflation even worse than today's, and it was interest rate hikes that brought it down. No one is at fault for Putin's war in Ukraine or the pandemic, but we all, unfortunately, have to endure temporary hardship to fight this crisis as quickly as possible.

    Nerd narrative

    There's a 50% chance that the maximum CPI inflation measured in 2022 will be 9.12%, according to the Metaculus prediction community.

    Political split



    More neutral political stance articles

    Sign up to our daily newsletter