Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Da Silva: What is happening in Gaza is not a war, it is a genocide
Da Silva: Even the Jewish people do not want this war; it is revenge by a government against the possibility of establishing a Palestinian state
Brazilian President Lula da Silva: What we are seeing is not a war between two armies. [What we have is a] completely professional army that is killing women and children in the Gaza Strip.
Hamas: We affirm our readiness to immediately begin a round of indirect negotiations to reach an agreement on the points of contention
Hamas: We welcome the continued Qatari and Egyptian efforts to end the war waged by the Zionist occupation against our people
Al Mayadeen's correspondent: Israeli occupation forces blew up Noura Al-Kaabi Hospital, designated for kidney dialysis patients, in the northern Gaza Strip
Al Mayadeen's correspondent: Israeli drone targets a car on the Ayta al-Shaab-Debel road in southern Lebanon
Yemeni Armed Forces Spokesperson Yahya Saree: The remaining airlines that have not yet complied with the ban are urged to take this into serious consideration to ensure the safety of their aircraft and passengers
Yemeni Armed Forces Spokesperson Yahya Saree: The YAF, after successfully imposing a partial ban on air traffic at Lydd Airport, are now working to impose a full ban on air traffic at the aforementioned airport in the coming period
Yemeni Armed Forces Spokesperson Yahya Saree: YAF's UAV Unit carried out three military operations targeting three vital Israeli sites in the occupied Palestinian areas of Yafa, Isdud, and Umm al-Rashrash, using three drones

US to undertake higher interest rates, prompt recession

  • By Al Mayadeen English
  • Source: Agencies
  • 12 Jun 2022 08:30
4 Min Read

The US Federal Reserve is looking to keep on increasing interest rates despite the damage the policy is inflicting on Americans without any notable positives.

  • x
  • A shopper shops in a Walmart store on May 18, 2021 in Hallandale Beach, Florida (Getty)
    A shopper shops in a Walmart store on May 18, 2021 in Hallandale Beach, Florida (Getty)

The United States is undergoing higher inflation rates day by day, and the Federal Reserve is looking to continue embarking on its path of increasing interest rates in a bid to mitigate the soaring prices that are putting a chokehold on Americans.

The Fed has been for the past few months aggressively hiking interest rates to try and lower rising prices, but its efforts did not materialize in May, with consumer prices hitting four-decade highs. Consumer prices in May rose 8.6% and soared over what economists thought was the peak in March.

With several challenges facing the Biden administration, such as Western sanctions on Russia prompting major pressure on global fuel and food prices, analysts are projecting that inflation will be in high gear for longer than expected.

The Western sanctions on Moscow have cut supply chains, pushing Russia out of the global energy market that is already troubled by the uncertainties surrounding supply due to the COVID-19 pandemic.

The US central bank has already indicated that it had plans to hike interest rates on loans this week and throughout July, but it is looking like the Fed is more likely to increase the aggressiveness of its policies put in place to combat inflation. That would drastically affect the national economy and increase the chances of recession.

The latest report on US inflation, the last major one to come out ahead of the central bank's policy meeting on Tuesday and Wednesday, also casts doubt that the Fed would be able to call a ceasefire in September, two months ahead of the midterm congressional elections widely expected to see Biden's democrats suffering seeping losses due to the administration miring the country in various unresolved crises.

The Biden administration has tried to absolve itself from responsibility for the widespread inflation hitting the country, with Biden himself trying to cast the blame on Russia for the record food and gas prices affecting US citizens.

Related News

UK to dramatically increase weapons production amid shortages

US-Israeli aid plan in Gaza used as tool for forced displacement: MSF

Russia responded by calling these attempts "unconvincing and futile", accusing Biden of trying to shift the blame and evade his responsibilities.

Looks like President Putin is governing the US as well, since he can impose taxes on food and gas. Unconvincing and futile attempt by @POTUS to shift the blame and escape his responsibilities! 👎🏻👎🏻👎🏻 #PriceHike https://t.co/xs2qrUGyze

— Dmitry Polyanskiy (@Dpol_un) June 10, 2022

Prices are still on the same path, rising exponentially over the past month in all sectors, including housing, foodstuffs, airline fares, gas, and new and used vehicles, and, according to data released by the US Department of Labor, the price hikes under Biden are setting new records in multiple categories.

Energy prices have risen 34.6% over the past year, the fastest since September 2005, food prices have increased 10.1%, and the cost of fuel oil increased by more than two-fold, soaring 106.7% - the largest increase in the history of the consumer price index. A gallon of gas across the US reached $5 nationwide for the first time in history, setting a new record for oil prices.

Biden, who blames "Putin's Price Hike" for the hike in inflation, said Washington "must do more - and quickly - to get prices down here in the United States." 

He has been urging Congress to pass legislation to mitigate the rising costs of key products such as medicines and services like transport in a bid to curb the damage done to US consumers.

The US Federal Reserve has already acknowledged that its policies of surging interest rates would cause several issues at home, but it still hoped to curb the rising costs of living without severely impacting the economy; however, that is looking to be growing increasingly more difficult for Washington.

The US government's budget deficit shrank by $66 billion in May to $426 billion as additional pandemic-related aid programs expired, according to the Treasury's monthly budget breakdown released on Friday.

  • United States
  • Federal reserve
  • Russia
  • Washington
  • COVID-19
  • Biden
  • Ukraine
  • Vladimir Putin

Most Read

President Donald Trump and Israeli Prime Minister Benjamin Netanyahu arrive to a news conference in the East Room of the White House, Tuesday, Feb. 4, 2025, in Washington (AP)

Rift widens: Trump, Netanyahu clash in heated phone call over Iran

  • Politics
  • 26 May 2025
US judges quietly consider private security amid Trump tensions

US judges quietly consider private security amid Trump pressures

  • US & Canada
  • 25 May 2025
An Israeli army vehicle moves in the Gaza Strip as seen from southern occupied Palestine, Thursday, May 29, 2025 (AP)

Hamas rejects Witkoff ceasefire plan, says alters terms

  • Politics
  • 29 May 2025
Spokesperson for the Yemeni Armed Forces, Brigadier General Yahya Saree, announces a new operation against Ben Gurion Airport on May 29, 2025 (Yemeni Military Media)

Yemen announces successful hypersonic missile strike on Ben Gurion

  • Politics
  • 30 May 2025

Coverage

All
War on Gaza

Read Next

All
MIT bans class president who gave pro-Palestine speech
US & Canada

MIT bans class president over pro-Palestine speech

Arab ministers condemn Israel 'ban' on planned West Bank visit
Politics

Arab ministers condemn Israeli ban on planned West Bank visit

Major General Hu Gangfeng, Vice President, National Defense University, People's Liberation Army, China, leaves after a panel discussion during the 22nd Shangri-La Dialogue summit in Singapore, Saturday, May 31, 2025. (AP Photo/Anupam Nath)
Politics

China blasts Hegseth, calls US top 'troublemaker' in Asia-Pacific

US activists demand shutdown of Musk's 'dirty' supercomputer: Reports
Technology

US activists demand shutdown of Musk's 'dirty' supercomputer: NBC News

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS