KTRH Local Houston and Texas News

KTRH Local Houston and Texas News

KTRH-AM covering local news from Houston and across Texas.

 

Biden-flation: Fed Officials Are Targeting An Interest Rate Above 5%

As Americans continue to struggle with the near record high inflation, the Federal Reserve is planning to raise interest rates yet again, when they gather next week.

Right now, the overnight lending rate is between 4.25% - 4.50%, and according to reports, The Fed has a target interest rate that is above 5%.

"This is what the Federal Reserve needs to do in order to bring down the inflationary pressures throughout the economy" said Vance Ginn, president of Ginn Economic Consulting, "What this does mean though for average Americans, and average Texans, this is going to create higher interest rates and it's going to be more costly this year than it was in 2022."

Right now, overall inflation is at 6.5%. The Fed has maintained that the goal is to get that number down 2%. They don't want to change that because if they do, it will make the Biden administration look even worse, if that's even possible.

Unfortunately, while the left and the administration have lied to the American people about the current recession that we are in, most experts believe it will be impossible to bring that inflation number down to 2%, without a recession. No pain, no gain.

"I think 2023 is going to be a pretty rocky year" Ginn told KTRH, "Whenever you think about the economy, I think there are going to be more jobs that are going to be lost this year because as the Federal Reserve raises that interest rate, that also puts a hurt on a lot of small businesses and some will have to raise prices, which will put a hit on many families."

At least there is one positive, here at the start of 2023. According to WalletHub, Houston has made the Top 5 of cities where inflation is rising...the least!

Chairman Jerome Powell Holds A Press Conference At The Federal Reserve

Photo: Getty Images


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