FEDERAL RESERVE’S Bold Rate Hike Stuns Wall Street, Sparks Fears for Everyday Americans
— Wall Street was rocked when the FEDERAL RESERVE raised interest rates by 0.75% to 5.25%. Inflation is stuck at 6.8%, and this surprise move sent the S&P 500 down by 2.5% in one day. Bond yields jumped, and the dollar shot up as investors scrambled to react.
Fed Chairman Jerome Powell said they had to act fast to keep inflation under control. He admitted that raising rates could slow down the economy but claimed it was needed for long-term stability.
This sharp rate hike shows the Fed is putting inflation control first — even if it means pain now for families and businesses. Borrowing money for homes, cars, or investments will get more expensive.
Some experts warn this could push America into a recession if it goes too far. Others say it’s a hard but necessary step after years of reckless government spending and easy money policies that hurt working people most.
