Bidenflation Forces Another Massive Interest Rate Hike

The rampant inflation Americans have come to expect from the Biden era forced yet another historic interest rate spike this week. The Federal Reserve on Wednesday pushed interest rates higher by another 0.75%, matching the surge the central bank implemented in June.

That was the largest amount American consumers and investors have had to cope with since 1994, and a month later there’s another one.

In other words, it’s like seeing an economic unicorn in June and then spotting another in July.

This unprecedented action was unanimously agreed upon by the Federal Open Market Committee and announced Wednesday afternoon. That makes four consecutive meetings by the central bank that ended with an interest rate hike.

The direct effects of this surge are on the interest rates banks charge other banks for short-term loans, but the impact goes much deeper. Everything from credit card payments to auto loans and adjustable mortgages will climb as families feel the pinch yet again.

The reason is clear.

June’s consumer price index, far from decreasing or even reaching a plateau as many expected, skyrocketed to 9.1%. This marks the highest inflation rate since 1981 as U.S. wallets and pocketbooks are steadily shrinking.

The much-ballyhooed increases in minimum and hourly wages of the past two years are now wiped clean by the Democrat’s economy. The Bureau of Labor Statistics showed real incomes based on average hourly earnings actually dropped in June by 1%.

Inflation-adjusted incomes are off a whopping 3.6% over just a year ago.

Why is this happening? The culprits are numerous, but one glaring reason is economic mismanagement by the Biden administration. It will be unthinkable — one would assume — for future generations to literally pour trillions into an already overheated economy.

But that’s exactly what this White House did, and coupled with sometimes extreme supply chain issues and the Ukraine war lowering the supply of goods, and prices skyrocketed. Too much loose money and too little supply is a concept a freshman economics student can understand.

But not the Biden administration. Now the incredible balancing act comes with higher interest rates to slow the economy, just not so much as to spur a deep recession.

Despite what Democrats and their media partners want the public to believe, the true economy is based on how much American families earn and what they are forced to spend on necessities. And those numbers, no matter the media spin, are only getting worse.