(by Phil Shiver | The Blaze) – With concerns growing over an “inevitable” recession due later this year, the Federal Reserve plans to raise interest rates at its fastest clip in three decades, the Associated Press reported on Monday.
The maneuver, which will make it costlier to borrow everything, from a line of credit to a mortgage on a home, will also further strain Americans’ pocketbooks and likely weaken the economy. But it is considered the only way to potentially stave off the even harsher economic consequences of a wider recession.
Economists predict the first rate hike will hit Wednesday, following a rate-setting meeting where the central bank is expected to announce that it’s raising its benchmark short-term interest rate by a half-percent — the sharpest rate hike since 2000.
But according to the AP, the rate hikes won’t stop there. Rather, they will continue at a “drastic” pace over the next several months.
“The Fed will likely carry out another half-point rate hike at its next meeting in June and possibly at the next one after that, in July,” the news agency said, adding, “Economists foresee still further rate hikes in the months to follow.”
The news is the latest development in an ill-fated inflation saga that began in the early days of Joe Biden’s presidency. Read Full Article >