The Federal Reserve increased the benchmark interest rate from 0.25 to 0.50 which marks the first increase since 2018.
The increase in interest rates is a reaction to the unprecedented inflation that the country has endured throughout the last year. The Federal Reserve also said in a statement that the pressures of consumer prices across all industries led to the movement of interest rates. Additionally, the Fed projections expect increases of a quarter of a percentage point in each of the next 6 quarterly meetings.
Leaders within the Federal Reserve system were pushing for a higher increase in interest rates during this cycle. Rapid inflation must be slowed by increased interest because there is a lack of awareness in the White House. Inflation has soared since Joe Biden took office and Americans are feeling the pressures in their daily consumption of goods.
The increase of interest rates should provide some relief in inflation, but there are many actions needed from leaders in Washington to provide a permanent solution. Americans cannot continue to live in a state of hyperinflation and the White House must protect the futures of the country.