With the Federal Reserve set to raise interest rates another .75 percentage point at its next meeting, it is a fair question as for the need to steal the punch bowl from the party, especially as the bowl is practically empty.
The price of gasoline is driving the decision at this point. Gas is hovering around $5.00/gallon in many areas of the country and most people are feeling aggrieved they can't drive their gas guzzling SUVs without seeing triple digit totals when they fill up. In previous gas shocks, many drivers would trade in and get smaller, more fuel efficient cars. Thanks to supply issues with the computer chips which run today's cars and the public distrust of electric vehicles, there doesn't seem to be alternatives to the 20 MPG standbys.
Because of the public's resounding unease about petroleum pricing, it seems the Fed will drive us into a recession. This doesn't need to happen, since most economic indicators point to a cooling off of the economy anyway. The only thing still pushing the high interest narrative is the unemployment rate which is hovering around 3.6%. Millions will be thrown out of work in a recession. It doesn't need to happen, but as usual, a bunch of old white men are calling the tune once again.
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