July 26, 2023
Interest rates hit the highest level in 22 years. And the Federal Reserve isn’t done raising them yet. And on top of that we actually haven’t even felt the full effects of the increases they’ve already made.
So says the Federal Reserve Chairman.
Yeah, you heard him correctly. He says interest rates haven’t been high enough or in place long enough to get inflation down to the Fed’s 2% target rate. And while we wait on that – it’s definitely possible we could see at least one more interest rate hike this year.
As I reported in this video – the latest inflation report says the in June we saw 3% inflation overall. So you’d think getting inflation down just 1 more percentage point shouldn’t be that hard. The Federal Reserve Chairman said not so fast – it may be 2025 before we get there. And in the meantime, credit is going to continue to be expensive which in turn is going make household budgets tighter and going to make hiring more difficult for business owners.
Watch the Fed Chair’s announcement about interest rates here.
