https://www.nbcnews.com/business/economy/inflation-federal-reserve-bank-collapse-fears-rcna75736
The Fed is planning on raising the key interest rate another .25% in efforts to fight against inflation and bring it down to its target percentage of 2. This will be the 9th time in a row that the interest rate will rise. With this interest rate rising, it will make borrowing and investing more expensive, like mortgage and car payments, which does not make people happy. It is also said that these rate hikes could happen all the way through 2025, as well as a continuous higher rate in 2023.
There were numerous concerns about the banking sector, but Powell, one of the experts, assured that the funds that are deposited by people are safe and that the Fed will continue to do what they can to fight off more problems. Though Treasury Secretary, Janet Yellen, said "that while officials could backstop more deposits to avoid a broader contagion — as they did twice recently — the federal $250,000 insurance limit remains in effect."
This is interesting to see go on, frustrating but in the long run it will help us out, hopefully. Though it is projected to be going on through 2025, the Fed is doing the best they can to not let things get way out of control.
Obviously we will see the impact of raising the interest rate in all aspects of the economy, but I wonder what prices lag the most from inflation rate? And when those areas get hit, is that when people will be less forgiving and more frustrated with the continuously increase over the next few years?
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