The Fed Announces Two Big Changes for 2022

Interest hikes are coming as inflation soars

Inflation is at a 39-year high and it appears not to be transitory. As a result, last Wednesday the Federal Reserve announced last Wednesday they will reduce their bond purchases twice a fast as previously planned and plans on raising interest rates three times in 2022; all in the effort to stem runaway inflation. The Fed has two mandates: maximum employment, and stable prices meaning moderate and stable inflation.” Keynesian economics argued that the government could tax and spend its way to full employment”, wrote the former president of the Federal Reserve Bank of St. Louis in 2005. If that economic theory sounds familiar it should. Consider our government’s response to the Covid-19 pandemic and the massive increase of our money supply.

We’ve faced the monster of inflation before.

Read More

1 comment

Jim Warns December 20, 2021 at 7:22 am

Are any lenders actually using SOFR yet?

Reply

Leave a Reply to Jim Warns Cancel Reply

HECMWorld.com uses cookies to improve user-experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Cookies View Policy

DON'T MISS OUT!
Subscribe To Our Newsletter
Be the first to get latest Reverse Industry updates and exclusive HECMWorld.com content straight to your email inbox.
Your information will never be shared.
close-link