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Federal Reserves raised its lending rate by 75 bases points
The FED announced that according to its statutory mandate to seek maximum employment and price stability, it will raise its lending rate by 75 bases points to 1.75%. While this may sound very low, considering that it was less than a quarter of a percent halfway through March, this is a significant change, all of which has taken place over the last 3 months. Why in such a harry? The FED, alongside most economists, expected the inflation to be transitory LAST SUMMER. Science, however, is evidence-based; data from last September started to disagree with that assumption. As a result, since last October, many economists began to call for higher rates; but the FED continued believing that inflation would go away and didn’t want to be confused with the facts.
6/21/2022, 11:23:46 AM
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