Ideal scenario for the FED

in Project HOPE2 years ago

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Greetings PH family today we are going to talk about economy again we will talk about the FED and all the current situation in the United States, the FED wants to reach an ideal economic scenario where the annual inflation in the US is 2% per year and an unemployment rate of 4%.

At this moment the inflation rate is 8.6% and the unemployment rate is 3.6%. To reach this ideal scenario the FED has started to fight inflation, one of its first decisions is to increase the interest rate by 0.75% and by the end of the year the interest rate will be 3.75%.

Jerome Powell president of the FED , stated that the Fed's aggregation to attack inflation does not mean that they want a recession , the truth is that all the cheap money was used to invest in cryptocurrencies and technology companies , so before this increase in interest rate people liquidated their position to have money they can use and this caused the collapse of financial markets.

The increase in interest rates affects loans, student loans and credit card interest, however Joe Biden's administration wants to convey calm and focus on the current unemployment rate, an achievement they want to maintain.

The truth is that many US citizens went from paying $1700 for their mortgages to $2500 all because of the Fed's interest rate hike which indicates that ordinary citizens have very difficult to make any investment in cryptocurrencies or in the stock market.

We can analyze that this bear market will continue for a while, I hope we have already touched the floor but I can not say for sure, I think the FED is already working to improve the US economy but never before increased interest rates without generating a recession, we can only be attentive to all the news and hope that the war in Europe ends for the economy of cryptocurrencies to improve.

Thank you for reading



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