The Fed warns that inflation is a battle Americans will face for quite some time

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Written By Jennifer Joslyn

💸 The Fed warns that inflation is a battle Americans will face for quite some time.

Federal Reserve Chair Jerome Powell claims that the strong job market has made The Federal Reserve’s efforts to stifle inflation difficult, even after many rounds of interest rate hikes. The economy will begin to cool…. eventually. But the interest rate benchmark rate will remain at its elevated point until inflation reached 2%, a target posed by the central bank. Americans borrowing money to purchase cars and houses will continue to feel the pain for quite some time.

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The Federal Reserve raised the interest rates by a quarter point this week
The Federal Reserve raised the interest rates by a quarter point this week

What does this mean for you?

The Federal Reserve is likely to see rising employment costs as the go-ahead for another interest rate increase
The Federal Reserve is likely to see rising employment costs as the go-ahead for another interest rate increase

According to the U.S. Labor Department, the employment cost index grew by 1.2% from July through September.

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The Fed promises more rate hikes despite easing inflationary woes

Cozied up in Jackson Hole, Wyoming this week, Federal Reserve chair Jerome Powell shared a message with others at its Annual Economic Symposium: interest rates will continue to rise.

The Fed blames the supply chain for historic U.S. inflation
The Fed blames the supply chain for historic U.S. inflation

The Federal Reserve Bank of New York has compiled a data analysis that has placed much of the inflation blame squarely on the supply chain.

The Federal Reserve seems unsure about possibility of a recession
The Federal Reserve seems unsure about possibility of a recession

The strong economy benefits from raising wages and consumers continuing to spend. In a way, this inflationary period is testing the limits.

Main Street anticipating more Federal Reserve hikes
Main Street anticipating more Federal Reserve hikes

Higher interest rates mean consumers will pay more to borrow money from institutions.

Jennifer Joslyn
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