The talk over whether or not we’re going to enter a recession continues. Most Americans are certain that a recession is just around the corner and could already be here without us being fully aware of it because it’s not official until certain numbers are in.
Joe Biden himself says that we’re not even going to enter into a recession. Karine Jean-Pierre, who is Biden’s mouthpiece, says that this economy is strong and there is no recession in sight. But the rest of the Biden regime isn’t all on the same page.
In fact, I would say that one of the guys who matters the most in this regard is actually saying that it is possible. Coming from someone in the administration, I think that this would actually indicate that it is a certainty and that he just doesn’t want to say it.
The man I’m referring to is Jerome Powell, the Chair of the Federal Reserve. He’s the guy who has been pricing you out of that new home that you’ve been wanting to buy. I know personally, I’ve been trying to buy a new home and I honestly don’t know whether or not I’m going to go through with it because of how much value I’ve lost with the current prices combined with interest rates.
Powell told Congress earlier this week that they are determined and committed to jacking up the interest rates to try and put a halt to the catastrophic inflation and admitted that recession is “certainly a possibility”. So, if you think that the home mortgage interest rates are going to come back down anytime soon, I’m telling you now that they are not. They are going to continue to go up quite a bit more over the next year. You can take that to the bank.
In his testimony, Powell told lawmakers that the pace of future rate hikes would depend on how quickly inflation comes down as the monetary screws are tightened, with assessments made on a “meeting-by-meeting” basis.
“Inflation has obviously surprised to the upside over the past year, and further surprises could be in store. We therefore will need to be nimble in responding to incoming data and the evolving outlook,” the Fed chief said, adding that markets had priced in a string of additional rate hikes, and “that is appropriate.”
While the Fed’s tightening of financial conditions can cool demand in a bid to ease price pressures, it’s unable to address the supply side, where Powell said some of the factors lie behind the current bout of inflation.
Sources:
Epoch Times