Staff Reports
The economic reality of 2024 is not looking so rosy, folks! The Federal Reserve, or the Fed as it’s commonly known, announced on Wednesday that they’re keeping interest rates unchanged. Why is this a big deal, you ask? Well, it’s because they’re basically saying, “Hey, inflation is still running wild and we’re not gonna do anything about it!”
The Fed’s decision to keep the interest rates at a whopping 5.25 to 5.5 percent is a real kick in the teeth for hardworking Americans and small businesses. The Fed had been hinting at cutting interest rates in 2024 to help the struggling economy, but now it looks like that’s as likely as finding a unicorn in your backyard.
Federal Reserve Provides an Update on Interest Rates…and It's Not Great https://t.co/FD48gzYczU
— David Jones (@davidjones720) March 20, 2024
In their statement, the Fed made it clear that they’re not planning on budging until they’re absolutely sure that inflation is heading back down to a more palatable 2 percent. Spoiler alert: it’s not happening anytime soon! Despite President Joe Biden’s claims that inflation is going down, the truth is that costs for Americans keep on rising. The Consumer Price Index showed a 3.2 percent annual increase in February, way above the Fed’s target.
And it’s not just the everyday folks feeling the pinch. The Producer Price Index, which measures the costs for businesses, came in way hotter than expected. A 0.6 percent increase in February means that businesses are also getting squeezed by inflation.
So, the Fed’s decision to keep interest rates unchanged is yet another blow to the struggling economy. Let’s hope they come to their senses soon and give the American people and small businesses a break!
