The United States’ economy is going through a transition from bad to worse. Many Americans are experiencing a downturn through inflation and stagnant wages. Unfortunately, many economists expect the problem to get much worse before it gets better. There is a good chance that Americans feel this way as well. News will confirm that the problem is going to continue till 2022 or longer. Below, readers will discover more about the most recent economic news and the upcoming three interest rate hikes.
Three Rate Hikes
The Fed has not worked quickly enough to combat inflation. As a result, prices have climbed significantly higher for Americans around the country. There is a risk that the prices will continue increasing because Fed officials refuse to do something about it. These officials are concerned that increasing the rate will cause the stock market to crash.
While this will likely be the case, it should’ve happened months ago. The economy is overheating with no sign of slowing down. Instead of acting immediately, the Fed will wait until 2022 to do something about the problem, which has been destroying Biden’s presidential ambitions.
After the most recent Fed meeting, the Fed raised its inflation expectations for the next two years. In addition to this, 12 of the 18 FOMC members believe the Fed will increase rates three times in 2022. The Fed was previously ridiculed for saying inflation was transitory and would soon pass.
Now, they’ll have to admit that inflation is quickly becoming a serious problem for American consumers. While rate hikes will help, the effectiveness will depend on the size of the hikes. Furthermore, the Fed will have to worry that raising rates will hurt the stock market and housing market.
By 2022, the Fed might not have a choice. Regardless, the central bank has kept current benchmark interest rates around zero. Therefore, the problem is only going to worsen before the first interest rate hike.
Student Loan Repayment
American borrowers haven’t been required to pay student loan bills since March 2020. As a result, many Americans have stockpiled cash. Some Democrat politicians have called for the Biden administration to extend the relief programme. Doing so would stop Americans from paying their student loan bills for a bit longer.
However, it appears that this is not going to happen now. Earlier this week, the White House confirmed it will not extend the relief programme. Instead, the moratorium is likely going to expire on January 31, 2022. When this happens, American borrowers will have to start repaying their student loans.
In addition to this, the Department of Education has set up a website so borrowers can manage their loans online. During his Presidential campaign, Biden claimed he would cancel some student debt, but that has not happened so far.
Rise In Covid Deaths
The Covid-19 pandemic has slowed but there is no end in sight. Unfortunately, the death rates continue climbing higher. According to stats from John Hopkins University, more than 800,000 Americans have died due to the coronavirus. Some believe that the Covid-19 pandemic will be the defining tragedy of this generation.
The pandemic started less than two years ago. Research shows that more than 200 million Americans have received two vaccination shots. Now, they will need to get boosters. While some have already done so, others say they will not get another shot.
Since last December, America has lost half a million lives. Suffice to say, the pandemic is far from over. Americans must continue taking steps to defend themselves from the virus. Staying at home and playing สล็อตต่างประเทศ is safer than leaving home.
Wallace Leaving Fox News
Television anchor Chris Wallace has been working for Fox News for 18 years. However, that era is coming to an end. Wallace has frequently been criticised by the Republics for siding with Democrats on many topics. Therefore, he might be a good fit for CNN. On Sunday, it was announced that Chris Wallace would be moving from Fox News to CNN.
While CNN has improved in ratings, it is still far behind Fox News. The right-wing network usually dominates the rating cycle with MSNBC and CNN far behind it. According to the news release, Wallace is going to host an interview programme on CNN’s digital streaming platform next year.