15 June 2022

Federal Reserve Goes Medieval

So the Fed's Open Makrets Committee just raised their benchmark interest rate by 75 basis points, (¾%) more than the 50 basis point hike earlier predicted:

The Federal Reserve approved the largest interest rate increase since 1994 and signaled it would continue lifting rates this year at the most rapid pace in decades to fight inflation that is running at a 40-year high.

Officials agreed to a 0.75-percentage-point rate rise at their two-day policy meeting that concluded Wednesday, which will increase the Fed’s benchmark federal-funds rate to a range between 1.5% and 1.75%.

The fed wants to prevent a wage-price spiral, despite the fact that wage growth has fallen significantly over the past few months.

The Fed is still acting as the bag-man for capital.  They want to be sure that the rich get richer., because decent pay just makes ordinary folks lazy.

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