Posted on 09/22/2022 5:50:09 AM PDT by BradtotheBone
he Federal Reserve hiked interest rates by 0.75% on Wednesday, making an aggressive move to tame inflation that could have other side effects — including a possible recession. The rate increase could also explode federal deficits even further in the years ahead.
A new analysis from the budget hawks at The Committee for a Responsible Federal Budget (CRFB) predicts this week’s rate hike alone will add $2.1 trillion to government deficits over the next decade.
That’s on top of a series of hikes we’ve already seen this year that are already set to add trillions more to the deficit in coming years. The central bank concluded its two-day policy meeting Wednesday by suggesting it could hike rates further in the months ahead.
To be sure, the deficit impact is far from the most pressing concern for policymakers focused on inflation. It nonetheless is a significant factor likely to challenge the Federal Reserve and fiscal policymakers as they try to navigate a “soft landing” that brings down the inflation rate without triggering a recession.
“The irresponsible fiscal policy [of recent years] has made the job of the Federal Reserve many times more difficult," Maya MacGuineas, the president of the CRFB, told Yahoo Finance earlier this week. This challenge, she added, “makes the chance of a recession even more likely.”
(Excerpt) Read more at money.yahoo.com ...
I’ve been saying for years, that it only will take one or two points to throw us into perpetual trillion dollar deficits.
I don’t like being right.
Hey now, it was “unexpected.”
And how long can you sustain spending a trillion dollars of imaginary money every year?
A trillion here.
A trillion there.
Pretty soon, you’re talking real money.
They’re already begging for the pivot
Possible??? We are in the recession NOW!
Deficits don’t mean anything to Washington D.C. - they just print more money.
Inflation is a monetary issue, not an underlying economic phenomenon. From an economic standpoint, the bigger long-term problem the U.S. is facing is DEFLATION.
Two Easy Predictions: Wealth Tax & Windfall Tax
https://www.zerohedge.com/political/two-easy-predictions-wealth-tax-windfall-tax
But...but...Slow Joe said the inflation bill would lower the deficit by trillion dollars...over 20 years
Possible??? We are in the recession NOW!
—
When the 3rd quarter comes in with negative growth, the only question is how will the media spin the news to be positive to Democrats. My suspicion is they will lash out and blame the general public or perhaps more specifically those evil ultra MAGA Republicans who are destroying the economy (please don’t ask how or why, they just need an enemy).
Yes, but the media line is that we are hoping to avoid a recession in 2023. I watched CBS mornings and their so called econ expert Jill Schelsinberg (sp?) and Nate were continuing this media lie saying we might "enter" a recession in 2023. Okey Dokey, no wonder they are known as fake news.
Debt(death) spiral?
When we took Volker’s interest rate medicine the deficit was less than $1T. Big difference this time.
Possible?
Don’t forget......... Help is needed
https://freerepublic.com/focus/f-news/4095195/posts
I will argue that the two quarterly negative values are quite small.
In the absence of details, I argue that the current recession is not general and is limited to the City States that are beyond help.
The Fed effort will make the recession general for the whole country
World biggest ponzi scam
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