The Federal Reserve isn’t weaken the United States of America. A 4.25 Federal Fund Rate,
even a 5.25 will not weaken the United States economy. Just because the Federal Reserve
increase interest rates it only a factor if the fed fund rate was already impacting the
economy negatively. If the rate was 5 or 6 % and slowing the the economy, any increase would
impact the economy. When the Federal Reserve starting increasing rate, the Fed Fund Rate was
0.18% and the first increase was only 25 basis points. With a six month lag time , means in
December 2022 the Federal Fund Rate was still stimulating the US Economy. Please comment.
The red-hot job market capped off 2022 on a high note, with employers adding 223,000 jobs in December,
the Labor Department reported Friday.
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS …
unemployment during the week ending December 24
was 1,694,000, a decrease of 24,000 from the previous week’s.
It is true, a large portion of the global economy is in an recession, China having
problem reopening and inflation soaring. What set the United States of America Economy
on such an awesome road of prosperity is the huge amount of stimulus by the Federal
Reserve and the Federal Government.
American Rescue Plan Act
Seven weeks into his presidency, Biden signed into law a $1.9tn economic stimulus plan
designed to combat the coronavirus pandemic and begin repairing the nation’s frayed social
safety net. The bill, passed by Democrats on a party-line vote, sent $1,400 stimulus checks
to tens of millions of Americans and temporarily extended unemployment benefits.
It included billions in funding to speed up vaccination distribution and school reopening
and additional money to help state and local governments weather the pandemic-induced economic
downturn. The legislation also temporarily increased the annual Child Tax Credit, a policy
experts say helped halve child poverty in America before it ended.
In addition, the Federal Reserve added trillions more with a Fed Fund Rate of 0.18. Not to
mention purchasing billions of dollars in mortgage back securities. Americans have over 1.7
trillion dollars in saving as of January 1, 2023.
Inflation is still to high, so is crime and the labor shortage are all problems. 2023 will the
year to deal with all of this. HAPPY NEW YEAR EVERYONE
