THREE MORE YEARS OF HIGH INFLATION, says US Fed

By Dana Malcolm 

Staff Writer 

#USA, December 16, 2022 – Inflation won’t level out for another three years; the harrowing financial forecast comes from the US Federal Reserve.  The Fed has however decided to fight back with a continued rise in interest rates until at least 2024.

It means pushing rates up another .50 points reaching the highest levels since the recession 15 years ago.

The Fed said despite low unemployment and growth in production Inflation is still elevated because of supply and demand imbalances related to the pandemic, higher food and energy prices, and other issues. In light of these issues and the country’s two percent inflation goal they decided to continue raising rates citing it is ‘appropriate’ action maintaining it was strongly committed to reaching two percent.

The Fed’s three year prognosis on protracted higher living costs due to high inflation is based on the PEC price index which captures inflation across a wide range of consumer expenses and reflects changes in consumer behavior which is only expected to be back to a healthy two percent by 2025.

The country is still predicted to enter a recession in 2023.

In October the possibility of recession was at 100 percent according to economic forecasts by Bloomberg.