Iowa 4th District Representative Randy Feenstra is voicing his worries about the U.S. economy’s direction after the Federal Reserve announced a 75-basis-point rate hike yesterday (Wednesday). Feenstra says, “[Wednesday’s] unprecedented decision by the Federal Reserve to raise interest rates again is the unfortunate consequence of President Biden’s wasteful spending agenda that has sent grocery and gas prices to 40-year highs and crushed family budgets. This move – which should have occurred months ago – threatens to fuel the ongoing recession American families are enduring. Even worse, as interest rates increase, so do the payments on our $30 trillion debt, colliding to form a dangerous, irreversible debt spiral. As a former professor of economics, this rate hike is yet another example of why I give the Biden-Pelosi economic agenda a failing grade.” Effective today (Thursday), the interest rate paid on reserve balances now stands at 3.15 percent, the highest rate in the U.S. since 2008.
