Fed Hikes Interest Rates, Politicians Ignore Economic Crisis

Tackling inflation could mean a recession: The Federal Reserve is using the only tool at its disposal to curb inflation—hiking interest rates to slow down the economy. Though slowing the economy would help slow inflation, it could also trigger a recession, a risk the Fed is willing to take.

The global fight against inflation: Central banks across the globe follow the United States’ move by raising their interest rates too. Today, the Bank of England increased its interest rates by .75 percent. Last month, The World Bank published a report warning about a possible global recession in 2023 due to the rising rates.

Concerns

From Wall Street: Elliot Management, one of the world's most significant and influential hedge funds, warned that the world inches toward “hyperinflation” and an economic situation not seen since WW2.

From politicians: Though the Republican party has campaigned against the economic crisis and responsible policies, the Democratic party, along with President Biden, are campaigning on moral lines, urging their voters that Republicans are a threat to Democracy. The legacy media has even compared Republicans to Nazi Germany for focusing on economic issues.

From voters: Less than a week before midterms, the top concerns for voters are still the economy and inflation. It’s the most prominent driver behind voting blocs, like white suburban women, turning to the Republican party instead of favoring Democrats in 2020.