Breaking news. Welcome. It is Eric Eriksson here. The Eric Erikson show. There is breaking news out of the Federal Reserve 75 basis points.

That is a three quarter of a percent hike in interest rates by the Federal Reserve. This is from CNBC.

The Federal Reserve on Wednesday launched its biggest broadside yet against inflation, raising benchmark interest rates, three quarters of a percentage point.

The Federal Reserve by going up three quarters of percentage point, 75 basis points, is the most aggressive hike in interest rates since 1994.

That took the Open Market Committee level of its benchmark fund rate to a range of 1.5% to 1.75% the highest since just before the COVID pandemic

began in March of 2020. Members of the Open Market Committee indicated a much stronger path

of rate increases ahead to arrest inflation moving at its fastest pace going back to December of 1981.

According to the dot plot of individual members' expectations,

the Fed's benchmark rate will end the year at 3.4%, an increase of 1.5 percentage points

from where they estimated in March. They expect to be at 3.8% in

2023. Also, they have cut their outlook for 2022 economic growth. They now anticipate GDP will gain

1.7% down from 2.8% in March.

The inflation projection as gauged by personal consumption expenditures rose to 5.2% from 4.3%

though core inflation, which excludes food and energy is indicated at 4.3% up just two-tenths of a percentage point.

Now, what does all of this mean?

Gobbled to a lot of people, essentially, the Federal Reserve is raising the amount of interest.

Banks must pay to the government to get money from the government in loans.

So banks will then increase what they give you as a mortgage rate or another loan rate,

and that's how they make their profit, the difference between the two.

So as the Federal Reserve interest rate goes up, mortgage rates, car loan rates,

all these other rates, they go up as well

correspondingly. It is now more expensive to take out a mortgage for a house than it was just a few

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