On November 1st, Fed Chair Jerome Powell broke some interesting news; the Fed wouldn’t be changing the interest rates. As the economy continues to outperform on many metrics, they aren’t sure if things have gotten tight enough to keep spending under control, or if they need to exercise more restraint. In this case, he claimed if progress on inflation stalls, they may need to adjust rates again.
Currently, they claim they are worried that the sky-high interest rates could disrupt the economy in spots across the US, they see the growth of wages and jobs across the US and see strong growth in the forecast. With the benchmark going from 5.25%-5.5%, he wants to see how things go between now and their next scheduled meeting in December.
Frankly, this outlook should be scaring us all. Look down the street, this shell game the Biden administration is catching up with us. Gas prices, housing prices, food costs, and taxes have all up significantly since he took office. Salaries are down when accounted for inflation, availability of real estate and jobs are all down.
People can’t afford a place to live without going into crippling debt that is being secured by big corporations who are influencing the Biden administration. They are keeping rates up and prices artificially inflated by self-creating a housing shortage by overpaying for property.
The Fed was never worried about the American economy or American jobs. They were worried about their investments, and what corporations buying up property could take while they artificially pumped up prices. It’s not an issue when interest is at 5.25% when you are paying cash for a property. Only to then increase its value by 10-25% in a matter of days by setting your figures, based on other homes you purchased in the area.
Buying up all comps in the area will artificially inflate the price, so by the time the end consumer goes to purchase they are priced out, and then buying a lesser property for more, or stuck renting for another year. This inflation is the cornerstone for rebuilding the economy in Biden’s name and his favor. With the average American paying the price, they have no real worry for the economy, just Biden.