May 17, 2022

The Queens County Citizen

Complete Canadian News World

The Fed raises rates faster than expected

The Fed raises rates faster than expected

(Washington) The US Federal Reserve has promised not to raise interest rates anytime soon, but many U.S. economists believe they will have to raise them early next year, according to a poll released Monday.

France Media Agency

The National Association for Business Economics (NAB) reports that 46% of people believe the Federal Reserve (Fed) will raise rates in 2022, although 2,823 believe it will do so in 2023, although most members of the Federal Reserve (Fed) last week thought of raising them to 2023. Says no.

Only 12% believe the rate will change after 2023.

Knob survey is the latest sign that economists are banking to accelerate inflation, following the release of the $ 9.19 trillion package approved by Congress, followed by other large amounts of new injections into the economy. The economy during the epidemic.

Some economists now fear the economy will heat up with rising prices.

In March 2020, as the pandemic brought the economy to a complete standstill, the central bank cut its rates.

Its chairman Jerome Powell said last week that it would keep them in the range of 0% to 0.25% until stable full-time employment and inflation reach a stable level of 2.0%.

However, economists are skeptical.

The Knob survey reported that 61% of those questioned questioned the risks of inflation over the past two decades.

Joe Biden’s bailout was investigated before it was approved by Congress.

Economists were further divided on the perception of the budget response to the crisis, as 33% of respondents said the government response was adequate – slightly lower than the previous survey in August 2020 – 37% that it was inadequate, even slightly lower.

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For 18%, this assistance is excessive, slightly higher than in August.

The United States has spent more than $ 5 trillion on aid since the outbreak began, pushing the budget deficit to the second-highest level since World War II this year, the congressional budget office said.

National debt reaches 102.3 percent of GDP.

According to NABE, 88% of respondents are concerned at various levels about the debt level.