Sunday, September 24, 2023

"Horrific Interest Rate Increase Coming; The Fed, Housing And Stock Market In Turmoil"

Full screen recommended.
The Atlantis Report, 9/24/23
"Horrific Interest Rate Increase Coming; 
The Fed, Housing And Stock Market In Turmoil"
"The Federal reserve’s hikes have significantly raised the costs of consumer and business loans in America. In fine-tuning its rate policies, the central bank is trying to guide the US economy toward a tricky “soft landing” of cooling inflation without triggering a deep recession. The US central bank has pushed interest rates to more than 4.75%, the highest since 2006. Besides forecasting another hike by year’s end, Fed officials now envision keeping rates high deep into 2024. As a consequence, the economy has decelerated significantly, as businesses reduced investments in the face of higher borrowing costs.

In generating sharply higher interest rates throughout the economy, the Fed has sought to slow borrowing for houses, cars, home renovations, business investment; this helps to ease spending, moderate the pace of growth and curb inflation; however, the opposite is happening, multiple factors are threatening to re-ignite inflation and weaken the economy. Rising oil prices are making gasoline steadily more expensive. Should that trend continue, it would worsen inflation and leave consumers with less money to spend. Even the so-far limited strike by the United Auto Workers union against the Big 3 US automakers will eventually further inflate vehicle prices."
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