The following article from the Wall Street Journal outlines a serious threat to the stability of our economy that cannot be avoided. The Federal Reserve’s policies have kept our economy and stock market artificially stimulated with POMO and low interest rates. The time to pay is now here as hyperinflation and a depression are the consequences of their actions. Raising the interest rates will increase our interest on the national debt as outlined in my earlier article. If the interest rate is raised 0.5%, the interest on our national debt will increase over $72 billion a year.
Fed Official Sees Rates Inching Up This Year
The president of the Minneapolis Federal Reserve Bank said Thursday the Fed may need to increase short-term interest rates by year’s end if underlying inflation rises as he anticipates.In a interview, Narayana Kocherlakota said he expected “a big upward movement” in core inflation—inflation excluding volatile food and energy prices—from about 0.8% late last year to about 1.3% by year-end.
As a result, he said, it’s “certainly possible” the Fed’s target for short-term interest rates, now near zero, would be lifted by more than half a percentage point late this year.