Unprecedented inflation rates have left the US economy reeling, with no end in sight.
The longer inflation persists, the deeper the recession.
Jerome Powell & the Fed are tightening their grip, raising rates to curb consumer spending and rein in inflation in America.
But at what cost?
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For the first time in over four decades, the United States is facing a major inflation crisis. The Consumer Price Index (CPI) rose 5.4% in June, the highest it’s been since 2008. This has led the Federal Reserve and its chairman, Jerome Powell, to take desperate measures to try and control the situation.
Inflation is a sustained increase in the prices of goods and services, which can lead to decreased purchasing power for consumers. This increase in prices may be caused by a decrease in the value of money, increased demand for goods and services, or decreased supply. In the current situation, multiple factors such as the ongoing pandemic leading to supply chain disruptions, pent-up demand, and increased government spending have all contributed to the current state of high inflation.
The Federal Reserve, the central banking system of the US, is responsible for regulating the money supply and ensuring stable prices. The Fed’s primary tool for controlling inflation is to adjust interest rates, which affects the cost of borrowing for businesses and individuals. When interest rates are high, it becomes more expensive to borrow money, which leads to a decrease in demand for goods and services, eventually leading to lower inflation. Conversely, when interest rates are low, borrowing becomes cheaper, leading to increased demand and higher inflation.
To tackle the current high inflation, Powell and the Fed have announced their intention to gradually increase interest rates over the next few years. This move is meant to slow down the economy, which should decrease demand and ultimately reduce inflation. However, this strategy is not without risks. Raising interest rates too quickly could lead to a reduction in economic growth, job losses, and even a recession.
The Fed’s decision to increase interest rates has also sparked debate among economists and policymakers. Some argue that the current high inflation is temporary and will eventually subside on its own, while others believe that the Fed’s decision to raise rates will lead to a slowdown in economic growth and could even lead to another recession.
In any case, it is clear that the US is currently facing a major economic challenge, and Powell and the Fed are taking the necessary steps to address the situation. It remains to be seen whether their actions will be enough to control inflation without causing any unintended negative consequences, but for now, all eyes are on the US economy, and the world is watching closely to see how it fares in the coming months.
Jerome cleaning up the dems spending mess.
There is no way possible for inflation to decrease when the printing presses are still going. They just printed a ton of money to bail out the banks. Get used to it.
Their numbers are bs it’s way worse
too much focus building expensive toys for Ukraine
I subscribed because you are cute
You need 10 million people to loose there jobs before inflation will drop. Just a fact.
14% interest rates by the time this is over and the US will be at war with some country possibly before election?
This is the news. BUT, when do you think will the Fed pivot and give us a mortgage rate below 6% or below 6.5%?
Inflation is coming down nicely, just got to be patient
With changes in the economy leading to instability in the stock market, some individuals may face a decrease in their investments in an effort to benefit from the current market conditions, I am considering liquidating my $725k portfolio consisting of bonds and stocks. Someone else in the same situation? Please tell me in the comments!..
They can’t fix a supply side problem with a demand side solution. They’ll create a recession and not fix the inflation!
When you sanction three top oil producers and piss off the fourth one and propose price caps on their products, you bet they won’t cooperate with you!
China has ended covid lockdowns, so they’ll buy more energy and the energy prices will affect everything else!
not consumer spending, ws 2.4 quadrillion derivatives chain
Inflation is far more harmful to individuals than a collapsing stock or property market because it directly affects people's cost of living, which
they immediately feel. It is not surprising that the current market sentiment is extremely pessimistic. In today's economy, assistance is critical if
we are to survive.
Banks are shutting down. Alot of Companies are forced out of business. Joe needs to be voted out. 4 More years of Joe and America will either be Nuked or Crumble due to inflation.
inflation, made by the elites… ;-))))
Doesn’t reining in spending with 50 basis points increase with another 50 basis points coming, doesn’t this mean, if your middle or lower class, you won’t be able to eat if you pay your bills, because inflation.
Instead of playing with the American people why don't you just hide them to 25% Technically To bring down inflation they need to be at 30% We currently have the worst administration in history We need more homeless Americans so that the illegals that we pay for can take over our homes The hard working people will pay for all of this That they have gotten this into Worst president in history.
No he is done raising in a few months they will be lowering rates since they just killed the economy
Inflation depends on petroleum prices
Day late and a dollar short with your videos as usual. CPI on mar 14th will disagree with this video
High interest rates can't fix it now. They have to lower them to fix inflation, just not as low as they were. Banks should be loaning at 4-5%
Im all cash waiting to buy. Unfortunately my pile will be worthless by the time I’m ready. Thanks evil Democrats
Keep in mind that the official inflation rate understates the reality.
Inflation is 40 plus