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US Central Bank Hikes Interest Rate, Blames Russia by nurudeen181(m): 6:20am On Mar 18, 2022 |
The US Federal Reserve’s Federal Open Market Committee has
boosted its benchmark interest rate by 25 basis points, the first
increase in over three years as the policymaking body seeks to rein
in near-record inflation. The new rate will run between .25% and
.5%.
In addition to the rate hike announced Wednesday, six more are
planned throughout 2022, according to a statement from the
privately-owned institution.
The Fed noted it “ seeks to achieve maximum employment and
inflation at the rate of 2% over the long run ,” insisting the
unemployment rate would finish out the year at a reasonable 3.5%.
As of February, it stood at 3.8%.
The Fed also announced it plans to start offloading Treasury
securities, agency debt and agency mortgage-backed securities in
the near future. Chairman Jerome Powell told journalists after the
meeting that the central bank could begin selling those assets as
soon as May, producing the equivalent of another rate hike, which
he was quick to pin on Russia.
Powell insisted the committee was “ determined to take the
measures necessary to restore price stability ,” acknowledging the
“ risks of further upward pressure on inflation and inflation
expectations.”
While the White House had initially claimed the soaring US inflation
was only “ transitory ,” the Fed later admitted the problem was more
serious than they believed and have belatedly attempted to wrestle
it into submission.
Individual committee members admitted they expect higher-than-
usual inflation, “ reflecting supply and demand imbalances related to
the pandemic, higher energy prices, and broader price pressures ,”
while projected GDP was downgraded from 4% to 2.8% - a drop
blamed on the conflict in Ukraine.
“ In the near term the invasion and related events are likely to create
additional upward pressure on inflation and weigh on economic
activity,” the committee said, acknowledging that beyond the
“ tremendous human and economic hardship ,” they were uncertain
what the conflict between Russia and Ukraine would ultimately
bring.
Russian President Vladimir Putin hit back against the endless
torrent of “ blame Russia ” narratives on Wednesday, telling
“ ordinary westerners ” that they were being conned into blaming
their own government's problems on Moscow.
“ You are being persistently told that your current difficulties are the
result of Russia’s hostile actions and that you have to pay
from your own pockets for the efforts to counter the alleged Russian
threat ,” Putin said in a speech. “ All of that is a lie. ”
The rush to hike interest rates at a pace not seen in years, in an
attempt to bring inflation back under control, has been met with
cries for caution from some experts, as the last time interest rates
were raised so quickly, it triggered a significant recession. With
certain parts of the US economy still not recovered from
government-imposed pandemic policies, such an outcome could
finish them off, critics said.
Some financial experts were less than sanguine about the prospect
of multiple rate hikes over the course of the coming year,
suggesting the 'medicine' might do more harm than good – even if
it didn't end up killing the patient.
“ We might be on the cusp of the Fed raising rates at the same time
there is a minus sign in front of GDP ,” Peter Boockvar, chief
investment officer of Bleakley Advisory Group, wrote in response to
the Fed's move, according to CNBC. “ What an awful position to be
in .”
US gas prices have reached record highs, surging 38% over the
last 12 months, while grain and other food staple commodities are
in short supply. Meanwhile, nearly all market indicators have
outstripped the Fed’s 2% inflation target. |
Re: US Central Bank Hikes Interest Rate, Blames Russia by nurudeen181(m): 6:23am On Mar 18, 2022 |
everything na russia |
Re: US Central Bank Hikes Interest Rate, Blames Russia by adefitim(m): 6:32am On Mar 18, 2022 |
All on Russia wey no comot from their country |
Re: US Central Bank Hikes Interest Rate, Blames Russia by Sadr: 8:01am On Mar 18, 2022 |
Like Joe Biden like Buhari. |
Re: US Central Bank Hikes Interest Rate, Blames Russia by Kazeem47(m): 8:29am On Mar 18, 2022 |
U.S. has master the art of blame game. They are very good at that,but they can never be blamed. 1 Like |
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