We are still paying for the Federal Reserve’s mistakes
We are still paying for the Federal Reserve’s mistakes
October 25, 2023, 12:53 p.m. ET
The Federal Reserve is relieved that inflation is falling and hopes it will fall to 2%. Meanwhile, households and businesses face high prices and costs and prepare for further increases. The consumer price index, which measures personal household spending, is 18.9% higher than its pre-pandemic level, and prices of some essential goods have increased further. Additionally, businesses face high operating and borrowing costs.
Despite the optimistic outlook of some policymakers, the public is not satisfied. The unemployment rate is near an all-time low, but consumer confidence and President Biden’s approval ratings are depressed. The bill for the Fed’s lower, longer interest rate strategy and its excessive deficits is coming due.
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