The Fed ramping up its intense fight against inflation this week probably won't help Americans facing skyrocketing gas and food prices
Business InsiderDec 27, 2022
The Facts
On Wed., the Federal Reserve (Fed) announced a second consecutive 0.75-point hike in its benchmark interest rate in a historic attempt to fight rampant inflation.
Fed Chair Jerome Powell suggested after the announcement that an additional 75-basis point hike may be possible in the future, depending on forthcoming economic data.
The Spin
Establishment-critical narrative
The Federal Reserve is slowing inflation, but at the risk of inducing a recession. The central bank waited too long to start cooling inflation and is now overcompensating, which runs the risk of slowing the economy so much that it shrinks.
Pro-establishment narrative
The process of bringing down inflation is unpopular and pain-inducing, but necessary. There is broad consensus among Fed bankers and economists that it's time to increase quantitative tightening to rein in inflation; this was the right move.