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Fed Chair Jerome Powell warned federal lawmakers on Tuesday of further increases to the target federal funds rate, citing ongoing inflationary pressures which make it difficult for the economy to reach a state of financial equilibrium.

If not managed properly, economy-wide inflation could ultimately lead to economic ruin and even threaten the country with total financial collapse.

Daily wire reports, as inflationary pressures remain high, Federal Reserve Chair Jerome Powell warned lawmakers on Tuesday that the central bank will continue to raise its target federal funds rate.

Since the lockdown-induced recession ended, policymakers gradually raised interest rates by 4.5%. In prepared remarks to the Senate Banking Committee, Powell said continued rate increases are necessary due to a robust labor market and persistent inflation in some product categories.

While every economic realist states that America is in trouble with inflation, Biden Remains optimistic.

CNBC Reports, in his second State of the Union address, President Biden highlighted several ways in which the economy has improved.

https://www.voanews.com/a/biden-exudes-optimism-for-us-economy-rest-of-world-expected-to-face-longer-recession-/6956895.html

Although he asserted there is still work to be done, he was optimistic overall.

However, the American people are not feeling as optimistic about their finances as they once did. According to a recent Gallup poll, half of Americans say their finances are worse than a year ago. The number of people who say their finances are better now is just 35%.

On Tuesday, Federal Reserve Chair Jerome Powell warned lawmakers of further rate hikes as inflationary forces remain rampant. Unchecked economy growth, economic ruin, and a financial collapse would inevitably result if steps are not taken now to protect the economy from dangerously high levels of inflation. Remarkably, even with an increase in the target federal funds rate of 4.5% over the past year from stimulus packages implemented during the pandemic induced recession, Powell emphatically noted that further rate hikes were necessary as inflation is worse than ever before. With these impending rate hikes in motion, our economy may soon see a reprieve from the turbulence of unchecked inflationary forces.

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