Since the Fed’s current policy of “Quantitative Tightening” has worked so wonderfully—collapsing the economy, blowing out various debt bubbles, and worsening inflation—the Fed is making it clear that interest rates will continue to climb up to the 5.4% range. During an event at the Economic Club of Washington, D.C. on Feb. 7, Fed chair Jerome Powell said that the “disinflationary process” in the U.S. economy started, but it “is going to take quite a bit of time, and is not going to be smooth. We will likely need to do additional rate increases.”
“Powell’s communication is consistent with another quarter-point hike in March and plans for more after that,” Chris Low, chief economist at FHN Financial, said Feb. 7 in a note. “Of course, those plans will change if the economy unfolds differently than the Fed currently expects.”
