Staff Reports
Since President Biden's "Build Back Better" policies were implemented, the Federal Reserve has had to increase interest rates significantly. According to Jerome Powell, the trend may still continue. Despite the Fed's attempts to downplay the issue, inflation is still a problem. Americans are still paying more for food and other expenses.
In his speech at the Jackson Hole Economic Symposium, Powell noted that inflation has been too high since Biden became the new US president. He noted that the Fed would continue to raise rates in order to prevent it from going beyond its 2% objective. This is in response to Biden's failed economic policies and the growing concerns about inflation.
According to Powell, core inflation is still high and needed to be sustained. This is the reason why the Fed is worried about the need to maintain a restrictive monetary policy. Unfortunately, Biden's attempts at "building back" have only resulted in economic instability and inflation. The White House tried to rebrand this as "Bidenomics" now, as they know that they've failed.
Powell also discussed how the rising interest rates have affected Americans. He noted that the rising rates have caused the cost of borrowing to increase significantly for consumers. Moreover, the increase in mortgage rates has led to a decline in home sales and housing starts.
The average mortgage rate has reached its highest level in over 20 years, which makes it difficult for people to enter the market. This is the result of Biden's failed economic policies.
In conclusion, Powell noted that the Fed is closely monitoring the US economy to see if it's still growing as expected. This is something that Americans have been aware of for a while now due to the high prices at the gas stations and grocery establishments. Despite the various factors that affect the country's economy, Powell noted that the Fed has to balance its actions carefully to prevent it from going too far. The message that the American people are receiving is that Biden's policies are causing the country's economy to go wrong.
