{"id":10601,"date":"2023-05-04T19:45:53","date_gmt":"2023-05-04T19:45:53","guid":{"rendered":"http:\/\/lonecandle.com\/?p=10601"},"modified":"2023-05-04T19:45:53","modified_gmt":"2023-05-04T19:45:53","slug":"why-the-feds-latest-interest-rate-hike-is-controversial","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=10601","title":{"rendered":"Why the Fed\u2019s latest interest rate hike is controversial"},"content":{"rendered":"\n<p>\n\n&#8220;On Wednesday,&nbsp;<a href=\"https:\/\/www.vox.com\/politics\/2023\/3\/22\/23652041\/federal-reserve-interest-rates-jerome-powell\" target=\"_blank\" rel=\"noreferrer noopener\">the Federal Reserve<\/a>&nbsp;raised interest rates another quarter point in regulators\u2019 ongoing bid&nbsp;<a href=\"https:\/\/www.vox.com\/money\/2023\/4\/24\/23691887\/economy-fed-soft-landing-recession-jobs-unemployment\" target=\"_blank\" rel=\"noreferrer noopener\">to reduce inflation<\/a>. It\u2019s a move that marks the Fed\u2019s 10th straight rate hike and it\u2019s one that\u2019s proven contentious given fears&nbsp;<a href=\"https:\/\/www.vox.com\/policy-and-politics\/23354658\/federal-reserve-interest-rate-increase\" target=\"_blank\" rel=\"noreferrer noopener\">that it could slow the economy too much<\/a>.<\/p>\n\n\n\n<p>The rate hike \u2014 which puts the Fed\u2019s benchmark rate between 5 to 5.25 percent \u2014 comes as another mid-size bank, First Republic Bank,&nbsp;<a href=\"https:\/\/www.vox.com\/business-and-finance\/2023\/5\/1\/23706910\/first-republic-bank-failure-crisis-fdic\" target=\"_blank\" rel=\"noreferrer noopener\">failed<\/a>&nbsp;and was later acquired by JPMorgan Chase, becoming the second-largest bank failure in US history. The Fed favors the hike because it\u2019s continuing to fight inflation, which has dipped substantially in the last year.&nbsp;<a href=\"https:\/\/www.nytimes.com\/2023\/04\/12\/business\/inflation-fed-rates.html#:~:text=The%20Consumer%20Price%20Index%20climbed,price%20increases%20since%20May%202021.\" target=\"_blank\" rel=\"noreferrer noopener\">At 5 percent<\/a>, inflation is still higher than the Fed\u2019s target rate of 2 percent.<\/p>\n\n\n\n<p>Economists and experts&nbsp;<a href=\"https:\/\/www.cnn.com\/2023\/05\/03\/opinions\/fed-interest-rates-banking-crisis-zandi\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">who oppose raising rates<\/a>, however, say inflation is already showing signs of slowing, and that additional rate increases could add even more challenges for small businesses and lead to a harmful uptick in unemployment.&#8221;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.vox.com\/2023\/5\/3\/23709902\/federal-reserve-interest-rate-hike-recession\">https:\/\/www.vox.com\/2023\/5\/3\/23709902\/federal-reserve-interest-rate-hike-recession<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;On Wednesday, the Federal Reserve raised interest rates another quarter point in regulators\u2019 ongoing bid to reduce inflation. It\u2019s a move that marks the Fed\u2019s 10th straight rate hike and it\u2019s one that\u2019s proven contentious given fears that it could slow the economy too much.<br \/>\nThe rate hike \u2014 which puts the Fed\u2019s benchmark rate between 5 to 5.25 percent \u2014 comes as another mid-size bank, First Republic Bank, failed and was later acquired by JPMorgan Chase, becoming the second-largest bank failure in US history. The Fed favors the hike because it\u2019s continuing to fight inflation, which has dipped substantially in the last year. At 5 percent, inflation is still higher than the Fed\u2019s target rate of 2 percent.<\/p>\n<p>Economists and experts who oppose raising rates, however, say inflation is already showing signs of slowing, and that additional rate increases could add even more challenges for small businesses and lead to a harmful uptick in unemployment.&#8221;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[217,165,1316,682,586,587],"class_list":["post-10601","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-economics","tag-economy","tag-inflation","tag-interest","tag-the-fed","tag-the-federal-reserve"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/10601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10601"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/10601\/revisions"}],"predecessor-version":[{"id":10602,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/10601\/revisions\/10602"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}