Fed Raises Interest Rates by 0.75 Percentage Points
The world has entered into the first phase of the collapse as Dragflation—negative economic growth and rising inflation—spreads across the globe.
The Federal Reserve on Wednesday announced what The Street has been expecting — that it will raise interest rates by 0.75 percent for a third time this year after dismal CPI data from August showed inflation at 8.3 percent.
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The federal funds rate will go from 2.25 percent to 2.50 percent to 3.0 percent to 3.25 percent, which is the highest level in 14 years.
TREND FORECAST: Knowing that the cheap money game launched by politicians and their Banksters buddies to fight the COVID War is over, equities continue their downward slide. Over in the U.S., the S&P 500 and Nasdaq had their worst week since June, and forecast, it will go from bad to worse: the higher the Federal Reserve raises interest rates, the steeper the artificially propped up equities and economies will fall... across the globe.
We maintain our forecast that equities will fall deep into bear territory and there will be a sharp real estate slump... with the commercial business sector taking the biggest hit. Remember the bullshit when politicians locked down businesses and the gutless morons that believed in their leaders supported their draconian mandates? They said that it would not hurt business or suck the joy out of life and nightlife... “It’ll come back!,” the masses and mass media babbled. (Subscribe for our exclusive content.)
The central bank said in a statement: The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in May. The Committee is strongly committed to returning inflation to its 2 percent objective.
The U.S. Federal Reserve has doubled the pace at which it is emptying its nearly $9-trillion bond portfolio, now shedding its holdings at a rate of $95 billion a month. As a result, bond traders are having a harder time closing deals, with the gap between asked and bid prices further apart than at any time since May 2020, according to a study by Bank of America.
PUTIN ANNOUNCES PARTIAL MOBILIZATION
CNBC noted that the Fed also raised its terminal rate to 4.6 percent in 2023. By the end of the year, it will get to 4.4 percent, “which means there’s at least one more 0.75 percentage point hike coming.”
TRENDPOST: Trends Journal subscribers know that we have criticized Jay Powell, the Federal Reserve chairman, and U.S. Treasury Secretary Janet Yellen for claiming for over a year-and-a-half that inflation was “temporary” then “transitory,” and only admitting to it when it could no longer be denied.
Also, as we had noted, they were either too stupid to see the facts, or were lying about inflation’s spike so they could keep interest rates at historic lows to keep artificially pumping up equity markets and the economy.
The reality is front and center on Main Street and will be hitting Wall Street, driving all indexes deep into bear territory as the Federal Reserve keeps raising interest rates to bring down inflation... measures they should have imposed a year-and-a-half ago when inflation began to rise.
However, as we have greatly detailed, across the Western bloc, the Banksters and government rulers denied inflation was rising, calling it temporary and transitory which the mainstream media supported... blacklisting those of us who provided facts that it was real and would continue to escalate.
The hardest hit will be the commercial business sector as the work-at-home trend becomes a permanent part of workforce culture, as companies downsize to save rental expenses... and go out of business as economic conditions deteriorate.
And, as Gerald Celente has warned, the deeper the economy falls the higher crime and violence will rise: “When people lose everything and have nothing left to lose, they lose it.” And as a result of the COVID War, which we had long warned about when politicians launched it, the data proves, with crime rates sharply rising... people have lost it.
Also, the deeper economic conditions fall and the higher social unrest rises, the louder war drums beat, as they are in the War between Ukraine, NATO and the U.S. vs. Russia. As Mr. Celente notes: “When all else fails, they take you to war.”
A Drug War against yearly injectionists is another option through UNODOC and funded by deductions from taxes cash at register that is 99 cents or two dollars in taxes from each purchase transferred to pay for a drug war and to charge injectionists with drug dealing and shut down test their premise and then permanent shut down after proof .DEA budget transfered ir increased and DEA updated. Though effort at saying so did not go anywhere when said as much elsewhere.