The Fed is expected to raise the benchmark funds rate by three quarters of a percent today. Goldman Sachs is now predicting consecutive 75 basis point rate hikes in June and July, followed by a 50 basis point move in September and 25 basis point moves in November and December, taking the fed funds rate to a range of 3.25%-3.5% by the end of the year.
Keep in mind that the rate has been, with the exception of FY2019, at an average of less than one percent since 2008. The Fed chairman has now said that he will have to purposely cause a recession in order to get inflation under control. Think about that for a minute, and what that means. The powers that be are going to purposely shut down the nation’s economy.
Meanwhile, gas prices near me are at $4.95 a gallon. If I drive 10 miles away, I can hit Sam’s club and get $4.53 a gallon, meaning that a single fill up of my pickup’s 40 gallon gas tank pays for nearly my entire annual membership fee.
Things are about to get a whole lot worse. We are so incredibly screwed.