Mainstream Media Now Believes Fed Will Blow Up Economy

It wasn’t long ago when inflation denial was rampant in the Biden White House and with its mainstream media allies. Not only has that narrative vanished, but the realization is sinking in that the Federal Reserve will “blow up the economy” to bring prices down.

Even the administration mouthpiece CNN admits that the possibility looms that the central bank will send the economy plummeting into recession as it continues massive and unprecedented interest rate increases.

Network analysts point to uncertainty on how the aggressive hikes will affect the economy. The once-overheated housing market is buckling under the strain, and bond yields have skyrocketed in tandem with mortgage rates.

Flying in the face of conventional wisdom from retail investors and noted economists, the Federal Reserve wholly abandoned the near zero interest rates that have prevailed for over a decade.

With the fourth consecutive three-quarter point interest rate increase enacted on Wednesday, the Fed continued its effort to pour cold water on inflation.

In fact, the much-anticipated move takes the short-term borrowing rate to a target range of 3.75-4% — the highest since January 2008.

Markets took an immediate dive on indications that more hikes are on the way.

Where once it was expected that there would be a pivot by the central bank back towards stimulating the economy, those hopes have all but disappeared. Replacing them is the grim reality now faced by economists and the retail industry that the increases are far from over.

Still, some analysts believe it is virtually impossible for the Fed to take an approach that is too hawkish.

The inflation unleashed by the Biden administration’s reckless spending at the worst possible time must be tamed. If and when unemployment rises, which virtually every economist now expects, many believe this will in turn relieve inflationary pressures and reduce the need for hikes.

The only comparable period in recent modern history is the era of the stagflation of the late 1970s, and the basis for inflation in 2022 is unquestionably worse.

Trillions spent by the government to prop up the economy during the pandemic are truly a bad gift that keeps on giving. The mainstream media along with most economists are now resigned to the Fed’s willingness to bring on a recession or worse to counter that government spending.