Fed’s Bostic Cautious About Rate Hikes as President Biden Blames Higher Prices on Covid-19 and Putin – As the effects of inflation continue to cause havoc on the lives of ordinary Americans, all eyes are on the Federal Reserve’s efforts to address the problem. Meanwhile, while St. Louis Fed President James Bullard wants to raise the federal funds rate swiftly, Atlanta Fed President Raphael Bostic believes the central bank should proceed with care.
After two years of unusual inefficiencies that have blighted the citizenry’s riches, the US economy looks bleak. Public policymakers’ irregular spending decisions, the Federal Reserve’s huge monetary growth over the last two years, supply chain shock from strong Covid-19 lockdown measures, and the strictest sanctions economy in decades due to the ongoing Ukraine-Russia crisis have all been blamed. All of these variables have contributed to the United States’ fastest-rising inflation rate in over 40 years.
Also Read: Robinhood Begins European Expansion, Acquiring Regulated UK-Based Crypto Firm Ziglu
James Bullard, the Federal Reserve Bank of St. Louis president, stated on Monday that the Fed could raise the benchmark bank interest rate to 3.5 percent by the end of the year. Bullard suggested an aggressive rate hike, similar to what Fed Chair Alan Greenspan did in 1994, with a 75-basis-point increase.
Regardless of Bullard’s objectives, a piece published on Monday by Wall Street Journal authors Jon Hilsenrath and Nick Timiraos claims that “the Fed has never successfully corrected a situation like this.” “Many things are out of the Fed’s control,” Hilsenrath and Timiraos wrote further in their paper.
While Bullard wants to raise rates dramatically, Atlanta Fed president Raphael Bostic has expressed reservations about raising the federal funds rate aggressively. On Tuesday, Bostic told CNBC’s Sara Eisen that he feels keeping impartial is also a critical goal.
Fed’s Bostic Cautious About Rate Hikes as President Biden Blames Higher Prices on Covid-19 and Putin – Many people are doubtful that the US central bank will be able to resolve the economy’s problems. Many people point to the Federal Reserve’s monetary and asset expansion, as well as previous President Donald Trump’s and current President Joe Biden’s huge stimulus bills.
Also Read: US Secret Service Has Seized Cryptocurrency Worth Over $102 Million in 254 Fraud Cases
Biden, on the other hand, is blaming Covid-19 and Russia’s Vladimir Putin for the weak economy. “I’m aware that people are still struggling as a result of rising prices. On April 20, Biden said on Twitter, “I grew up in a family where if the price of petrol went up, we felt it.” “Let’s be clear about why prices are so high right now: COVID and Vladimir Putin.”