The Intelligence from The Economist Inflation nation: The Fed raises rates, again
Sep 22, 2022
Simon Rabinovich, U.S. economics editor at The Economist, dives into the Federal Reserve's recent aggressive interest rate hikes aimed at combating high inflation and their possible effects on the labor market. Anne Rowe, Obituaries editor, reflects on Frank Drake's groundbreaking quest for extraterrestrial intelligence. The discussion also highlights alarming trends in forced labor globally and the necessity for stronger regulations to tackle modern slavery, creating connections between economic vulnerability and human rights.
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Inflation Nation
- Americans feel the squeeze of inflation, especially on essentials like food and housing.
- The Federal Reserve has responded with interest rate hikes to combat rising prices.
Aggressive Rate Hikes
- The Fed implemented a third consecutive 0.75% interest rate hike, marking the sharpest monetary tightening since the 1980s.
- This aggressive approach demonstrates their commitment to controlling inflation after a slow start.
Powell's Justification
- Fed Chair Jerome Powell acknowledges the hardship caused by inflation, particularly for low-income individuals.
- He emphasizes the Fed's commitment to controlling inflation, even if it means economic pain.