$9 Trillion And Counting! And Still No Interest Rate Increase… Powerless Against Runaway Inflation?
Consumers Paying More For Worse Stuff…America's Credit Card Debt Fastest In 22 Years…
Minutes show Fed ready to raise rates, shrink balance sheet soon
Federal Reserve officials outlined plans for interest rate hikes and a reduction in the asset holdings on their balance sheet at their last meeting.
Minutes released Wednesday from the January session show concern about inflation and financial stability though members urged a measured approach to tightening monetary policy.
FOMC members noted that inflation was beginning to spread beyond pandemic-affected sectors and into the broader economy.
Fed Eyeing Potential for Faster Rate Increases to Ease Inflation Officials also stepped up deliberations last month over how to shrink central bank’s $9 trillion asset portfolio, January minutes show
The Fed’s battle to fight inflation could cause more pain than higher prices.
New York (CNN Business)Rapidly rising prices have caused economic hardship for millions of Americans. But drastic action to rein in prices could lead to even more pain, including job losses.
Poster Comment:
American credit card debt just grew at the fastest rate in 22 years. Overall, total U.S. household debt increased by $333 billion during the fourth quarter to $15.58 trillion, according to the New York Fed. That is due to inflation. Of course there are limits to growing credit card debt.