I am one of those who thinks we should abolish the Federal Reserve Bank and this is one of the reasons why. Their decisions don’t follow any kind of data-driven process. Based on the rate of inflation, employment, and every other metric, the Fed would have lowered interest rates if Biden were president. Because they don’t like the current president, they decided to keep interest rates where they are. If the Fed is just another political body trying to manage our economy based on political motivations, then they are doing more harm than good.
The Federal Reserve held interest rates steady on Wednesday, just weeks after President Donald Trump intensified calls for lower borrowing costs and voiced eagerness about the potential “termination” of Fed Chair Jerome Powell.
The Federal Reserve raised its key interest rate on Wednesday from a range of 0% to 0.25% to a range of 0.25% to 0.5%.
The rate hike is a small one, but it will affect millions of Americans, including investors, home buyers and savers. Savers will eventually see a little more interest on their deposits at the bank, and mortgage rates will gradually rise.
