Persistence of Inflation
Citizens of the United States have what seems like endlessly fought to control inflation. Prices are at an all-time high and are continuing to rise. It seems that every effort that the Federal Reserve can unleash, it ends up backfiring. The United States economy is degrading, and prices for everyday essentials such as groceries or housing are too high for anyone to afford.
This then leaves many families in a state of despair, working 2-3 jobs to sustain themselves and their family. This is certainly not the American Dream and is something that needs to be fixed as soon as possible.
Steady Interest Rates
Despite the resilience demonstrated by inflation, the Federal Reserve steadily maintains interest rates. This decision is taken after Fed Chair Jerome Powell and his team were able to analyze the fresh data that was presented. This data was able to show how prices were affected, and in what direction inflation is headed.
However, there certainly has been improvement, but not enough improvement to change the decision that was taken. “The decision arrives roughly a week after fresh inflation data showed inflation ticked up in February, the latest sign that progress toward cooling prices had struck a rough patch,” according to ABC News.
However, Powell and his team are estimating that changes may not take into effect within the near future. In fact, rate cuts may be noticed around the fall of 2024, in which this would be the first rate cut since March 2020 when COVID-19 shut down the economy entirely.
The Future of Inflation
Despite the improvements, prices for rent, groceries and more are still on the rise, and out of many budget ranges for many families in the country. Many families continue to hope for a change, but it still may take some time for one to arrive. This certainly does not ease the fear that is in each citizens’ minds.
However, it is clear that the Federal Reserve is trying to make changes when it comes to the prices in the country, as they have noticed they are too high for the average American to afford. Therefore, the hope remains that, if possible, change can be made, and quickly.
Written by David Loran Jr
Sources:
ABC News: Fed holds interest rates steady, postponing rate cuts amid stubborn inflation
CBS News: The Fed holds interest rates steady. Here’s the impact on your money.
Featured Image Courtesy of Brookings Institution’s Flickr Page – Creative Commons License
Inset Image Courtesy of John Loo’s Flickr Page – Creative Commons License