station, at the mall when they re paying rent, and the fed was late to the scene of this inflation fire. they didn t do anything major to address it until march. now they re being forced to play catchup. kate, hopefully they re able to get inflation under control. the tricky part, of course, is making sure they don t do so much that they end up causing a recession. absolutely. all right. standing by to hear what comes out for the expected rate hike. in the meantime, jared bernstein is standing by, a member of president biden s council of academic advisers. matt laid it out, the rate hike is coming in likely hours. do you think the fed are you worried the fed could go too big? we re very careful not to get into the fed s knitting in any kind of specifics regarding their interest rate policy in terms of too small, too big. what we have great faith and the president has said this many
high. and while the president and his party are taking the political hits, this is really the responsibility of the federal reserve to try to get inflation under control. so in just about 90 minutes, we re expecting toed to hear from the federal reserve, investors anticipating three quarters of a point increase from the fed. we haven t seen anything like that in modern fed history, but we re not in normal times right now. consumer prices are rising at the fastest pace since the 1980s. so the fed is trying to act like the firefighter, put this inflation fire out. and there is real world implications here. look what is happening in the housing market. mortgage rates have nearly doubled from a year ago. 2.8% this time a year ago, over 5.5% now. that is a big deal because the higher rates go the less home you can afford. let me show you what i mean. simply because the cost of borrowing has gone up, home buyers are spending $320 more per month on a $250,000 home,
reporter: the federal reserve just made history announcing that they re raising interest rates by 3/4 of a percentage point for the second meeting in a row. we haven t seen anything like that in back to back meetings in modern fed history, but we re not in nor times. we re dealing with the worst inflation inflation prices in 40 years. inflation remains elevated due in part to russia s invasion of ukraine and very high food and energy prices. so the fed is stepping in and acting like the firefighter. they re trying to put this inflation fire out. the goal here is to raise borrowing costs and try to cool off red hot demand, and that should hopefully allow supply a chance to catch up. but you know, officials also signaled that they re not nearly done with rate hikes. they said it would, quote, will be appropriate to continue raising interest rates. and here s the problem. they re raising rates into an economy that is already showing
nest eggs. a recession could ease very high inflation, although there is no guarantee. the nightmare scenario would be a recession and high inflation, what is known as stagflation. americans are getting crushed by the cost of high living and this is forcing the federal reserve to take dramatic steps to get inflation back under control. as far as that is concerned, in terms of this expected rate hike, maybe this week from the federal reserve just how high should americans be bracing for rates to go? wolf, the fed is clearly been late to the scene of this inflation fire and so now they are trying to play catchup by aggressively raising interest rates, designed to cool inflation off. they have been steadily increasing their pace of rate hikes in recent months. last month, raising interest rates by three quarters of a percentage point, the biggest single move since 1994. it is a slam dunk that they re
value of the millions of americans struggling to afford groceries and gas as inflation soars to 9.1%. senator manchin believes it s time for leaders to put political agendas aside, reevaluate, and adjust to the economic realities the country faces to avoid taking steps that add fuel to the inflation fire. the idea, stop spending that money. the pressure obviously is on the white house not just from the president s political opponents, it s also coming from left because there is growing frustration over lack of progress. on climate change, for example. and what some believe is the refusal of the government to use its full weight to reach its climate goals. yes, even a bit of frustration over democrats like joe manchin who seem opposed to spend all for the green new deal. shannon: okay, so kevin, also developing tonight in the federal investigation to hunter biden s business dealings, according to one of our sources, what can you tell us? kevin: very interesting