When inflation began during the first half of 2021, the Biden administration was absolutely full of excuses.
They first claimed that higher prices wouldn’t last for very long. Then, they said inflation was a net positive for the US economy, a “high-class problem,” etc. However, this series of back-to-back excuses has only led to financial distress for the American public.
At this time, much of the public is very much interested in knowing when inflation is finally going to pass. This answer will affect how people are able to live and when they’ll be able to feel better about their financial situations.
Sadly, new information from the Federal Reserve confirms that no one should hold their breath while waiting for inflation to make its exit, as documented by The Blaze.
The Latest from the Federal Reserve on Inflation
Earlier in the week, Federal Reserve chairman Jerome Powell shared some updates on inflation that a lot of Americans aren’t going to be too pleased to hear.
Powell explained on Monday that inflation is far higher than acceptable. In light of this reality, the Federal Reserve is going to keep increasing interest rates as a means of offsetting inflation. Also, the interest rate hikes are going to very likely be much higher than anyone initially anticipated.
Earlier this month, the Federal Reserve implemented interest rate increases as a means of fighting inflation. Powell’s statements on Monday only served to confirm that this won’t be changing anytime soon.
What Higher Interest Rates Mean for Americans
The news of higher interest rates is not at all good for people who are struggling financially. It’s definitely a troubling update for Americans who don’t have healthy savings accounts to fall back on or disposable income.
Higher interest rates mean that people with credit card debt are going to have to pay more money for a longer period of time in order to make this debt go away. Basically, anyone who has borrowed money or taken out any kind of loan in any capacity is looking at higher payments.
For people who cannot afford to make these higher payments, they’re going to accumulate more and more interest. In many ways, this is a vicious financial cycle that only increases hardship in the lives of vulnerable Americans.
Since this announcement from the Federal Reserve on Monday, the Biden administration hasn’t put out any plan that is specifically designed to bring down inflation.
Americans are in for some tough days ahead, thanks to this White House.