(BrightPress.org) – The Federal Reserve is warning more rate hikes may be coming as inflation hasn’t been stemmed by their previous interventions. Fed Governor Michelle Bowman made the announcement in a speech given on Friday, May 12th. She said that the data they’re reviewing demonstrates that their interventions have so far failed to halt inflationary pressures.
Bowman said she hadn’t seen “consistent evidence” inflation was beginning to decline during a conference for the European Central Bank in Frankfurt. She further said that if inflation remains high with a tight labor market, they would have to “tighten” rates in order to effectuate the kind of inflation reduction required for the economy to stabilize.
Stock prices fell Friday after briefly gaining some ground in the morning due to fresh data from the University of Michigan which suggested that consumers anticipate inflation to continue to rise. Investors are awaiting a resolution to the debt crisis before the June 1st deadline. President Biden and House Speaker Kevin McCarthy (R-CA) will meet next week to discuss the issue and hopefully negotiate a resolution. They were supposed to meet on Friday, May 12th, but their staff needed more time to prepare, officials said.
McCarthy was able to pass a budget bill that would authorize spending and keep the U.S. from defaulting on its debt, but that comes with some conditions like spending increase limits which would prevent the Democrats from endless spending and signing away hundreds of billions of taxpayer dollars.
Queen of Doom Treasury Secretary Janet Yellen was warning of default as early as June 1st, though she wiggled a bit on that date when pushed. The Treasury’s balance as of April 27th was $296.2 billion, freshly flush with taxpayer dollars collected for FY2022. Authorities are concerned that if that were to reach zero, it would trigger cataclysmic economic fallout with market declines and downstream effects impacting other nations around the world. Given the desperate nature of the situation, it’s unlikely that Democrats will continue to refuse to negotiate, despite Biden’s previous comments suggesting no compromise was possible.
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