Interest Rates Are Going to Keep Rising

Inflation in the United States continues to throttle the livelihoods of the American people.

Right now, as prices rise, everyday Americans are in very tight spots. People are wondering how they can keep on supporting themselves, putting gas in their tanks, affording groceries, etc.

Sadly, it seems as though things are going to get worse before they get better.

This month, the Federal Reserve surged interest rates as a means of counteracting inflation that is far beyond where it should be.

That’s not the end of it, though. An announcement from the Federal Reserve chairman has just confirmed that interest rates are going to continue rising for the foreseeable future, per The Blaze.

The Latest from the Federal Reserve

Jerome Powell, the chairman of the Federal Reserve, laid it all out on the line this Monday. Powell stated that at this time, inflation is too high and simply cannot continue as it has been.

Powell then said that because of where inflation currently stands, the Federal Reserve is going to keep bumping up interest rates. These rates will continue to go up until inflation falls.

Meanwhile, as this update comes from the Federal Reserve, Democrats in Congress are trying to pass another spending package. This will undoubtedly engender more inflation, which will in turn lead to higher interest rates across the board.

On Monday, Powell also warned that banking officials underestimated the adverse economic impacts stemming from COVID.

What Americans Should Know About High Interest Rates

High interest rates are going to hurt Americans with mortgages, credit card debt, medical debt, student loans, etc.

This means that life will get increasingly more expensive; for people who are living on tight budgets, fixed incomes, paycheck to paycheck, etc., this is not good news.

Many lower-income people struggle with credit card debt. This means that higher interest rates are going to make it harder for folks without abundant financial resources to achieve a status of being debt-free.

Higher interest rates will also make it harder for middle-class people who are interested in becoming homeowners. Already, the housing market is volatile.

Interest rates that are set to keep surging aren’t going to make the market any less tumultuous. However, the Federal Reserve is saying there’s no other option but to raise interest rates until inflation drops.

If the Democrat Party gets its way and passes more spending measures, inflation will rise, and interest rates will follow suit.

What do you think about this latest announcement from the Federal Reserve? Do you believe the rise of interest rates is going to have the worst impacts on the nation as we know it? In the comments area below, you’re more than welcome to share your thoughts.