US Inflation: Fed Announces Another Rate Hike

    Photo: Getty Images [via Fox Business]

    The Facts

    • On Wed., the Federal Reserve (Fed) announced a second consecutive 0.75-point hike in its benchmark interest rate in a historic attempt to fight rampant inflation.

    • Fed Chair Jerome Powell suggested after the announcement that an additional 75-basis point hike may be possible in the future, depending on forthcoming economic data.

    The Spin

    Establishment-critical narrative

    The Federal Reserve is slowing inflation, but at the risk of inducing a recession. The central bank waited too long to start cooling inflation and is now overcompensating, which runs the risk of slowing the economy so much that it shrinks.

    Pro-establishment narrative

    The process of bringing down inflation is unpopular and pain-inducing, but necessary. There is broad consensus among Fed bankers and economists that it's time to increase quantitative tightening to rein in inflation; this was the right move.

    Nerd narrative

    There is a 6% chance that the first United States recession before 2032 will lead to depression, according to the Metaculus prediction community.

    Establishment split



    More neutral establishment stance articles

    Sign up to our daily newsletter