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Interest rates hike by 75 points, largest increase since 1994

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After a meeting of the Federal Open Market Committee led by Chairman Jerome Powell on Wednesday, the Federal Reserve raised interest rates by 75 basis points. The decision its “the single largest increase in nearly thirty yeas as inflation soars” writes National Review. 

The group announced it intends to bring the rate to a range of 1.5 percent to 1.75 percent in the short-term. “Of the eight-member committee, seven voted in favor of the hike while one member, Esther George, President of the Federal Reserve Bank of Kansas City, voted against the increase, preferring that it be 0.5 percent instead.”

The hike represents the largest since 1994, when then-Chairman Alan Greenspan “led a similar increase in anticipation of high inflation during an economic recovery.” Inflation too has reached record highs, hitting its peak level since 1982, currently at 8.6 percent, according to the latest federal Consumer Price Index report (CPI).

Powell is in his second term after President Biden re-nominated him to the chairman’s post. Powell has said the Federal Reserve would do “whatever it takes” to curb inflation. However, the move will likely have detrimental implications for individual borrowing and will “likely lead to higher interest rates on loans of consumers and businesses.”

8.6 percent “is a figure for which the Biden Administration has received considerable criticism, with its policy actions – i.e., the nearly $2 Trillion American Rescue Plan’s Covid relief spending and ongoing efforts to transition U.S. energy supply away from fossil fuels – being directly cited as exerting demand-pull effects on consumer prices” reports National Review.

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Economy

Growing IRS is Biggest Police State Expansion in History

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The Democrats’ new reconciliation bill is “going to be the largest expansion of the domestic police state in American history” reports The Federalist. The Federal Government “already collects $4.1 trillion every year—or $12,300 for every citizen” yet believes it “needs 80 new battalions of new IRS cops.”

The job posting itself listed prerequisites for agents who can “Carry a firearm and be willing to use deadly force, if necessary.” White House Press Secretary Karine Jean-Pierre promised that the IRS wouldn’t engage in new audits of anyone making under $400,000, an attempt at saying, essentially, the middle class is ‘safe.’

Connecticut’s Chris Murphy also said that the bill was passed to stop an “epidemic of tax cheating amongst the millionaires and billionaires” and promised that “audit rates won’t increase for anyone making under $400K.”

“This is a lie” adds The Federalist. “Nothing in the bill that Democrats passed through the Senate limits audits. Murphy, along with every other Democrat in the Senate, voted against a Republican amendment that would have prevented new agents from auditing individuals and small businesses with less than $400,000 of taxable income.”

The IRS doesn’t simply collect taxes, it also enforces speech codes. The Federalist reminds readers:

This is what empowered Lois Lerner to target conservatives groups – “crazies and “a—holes” — who used words like “Tea Party” or “patriots” in their names. But, even at the time, leftists at The New York Times editorial board praised the IRS for going after conservative groups because they did not “primarily” engage in “social welfare,” and so did not deserve an exemption under Section 501(c)(4) of the tax code. Has anything in the evolution of the Democratic Party given you confidence that such power would not be abused or that an engorged IRS would be immune from political pressure?

Wrestling with a insanely complex tax code — nearly 8 million words — costs Americans billions every year. Rather than flattening and simplifying this astonishingly convoluted code, which not only would have saved citizens but the government money, Democrats decided we needed up to another 87,000 people to enforce it.

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