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

    CRITICAL

    PRO

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