Bidenomics = High mortgage rates, high inflation rates, collapsed banks, expensive groceries, record high rent, and dwindling retirement accounts.
The Federal Reserve on Wednesday paused rate hikes. The Fed kept the benchmark rate in the range of 5.25% to 5.50%.
For now.
“We’re prepared to raise rates further, if appropriate, and we intend to hold policy at a restrictive level until we’re confident that inflation is moving down sustainably toward our objective,” Chairman Jerome Powell told reporters on Wednesday.
Despite what Jerome Powell said, inflation is not cooling. The Biden Regime relies on lies and voodoo math when it rolls out its latest inflation reports.
The Consumer Price Index (CPI) rose 0.6% in August – the biggest monthly gain for the year.
Energy prices soared as real wages declined – Bidenomics!
Gas prices once again this week soared to record levels for the year.
Grocery prices are up 19%. Americans are suffering because of Joe Biden’s tax-and-spend policies.
Per CNBC:
- The consumer price index rose 0.6% in August, its biggest monthly gain of 2023. The inflation gauge rose 3.7% from a year ago.
- The core CPI increased 0.3% and 4.3% respectively, against estimates for 0.2% and 4.3%. Fed officials focus more on core as it provides a better indication of where inflation is heading over the long term.
- Energy prices fed much of gain, rising 5.6% on the month, an increase that included a 10.6% surge in gasoline.
- The jump in headline inflation hit worker paychecks. Real average hourly earnings declined 0.5% for the month.
The Federal Reserve has raised interest rates 10 times for a total of 525 basis points since last year – 7 times in 2022 and 3 times in 2023 – in an effort to hedge inflation.
It’s not working.
Inflation rates are STILL high.
The higher interest rates are now posing a problem for the banking sector and the real estate market.
Silicon Valley Bank, Signature Bank and First Republic Bank collapsed this year after depositors withdrew billions of dollars from the lending institutions.
Regional bank stocks are also getting hammered amid fears of contagion.
The popular 30-year fixed rate mortgages are between 7.5% – 8.0% and housing prices are plunging.
Financial experts say the high mortgage rates are here to stay.