Hello everybody and thank you for tuning into the weekly report.

Federal reserves rate increases too little, too late.

The Federal reserves recent .75% increase in its benchmark interest rate is the Fed's highest

rate increase since 1994.

This increase is a sign that the Fed has finally realized that price inflation is more

persistent and widespread than the Fed initially believed.

Stocks have falling much lately.

This isn't part because of fears rate hikes will push the economy into recession.

The Fed itself seems to believe that the economy is going to slow down in the near future as

it has reduced its projection of 2.2% economic growth in 2022 to 1.7%.

Even more ominously, the Atlanta Fed's GDP tracker fell to zero for the second quarter

of 2022 due to par in May's weak retail sales.

The Fed claims it will reduce inflation without significantly increasing unemployment or

causing a recession.

This is likely to be as accurate as the Fed's prediction that inflation was transitory.

This latest rate increase will only raise rates to where they were before the lockdowns

led to Fed to embark on a historic money-creating spree.

The Federal Reserve cannot increase rates to anywhere near the level they would be in

a free market because doing so would increase interest payments to unsustainable levels

for debt-ridden consumers, businesses, and the Federal Government.

Increases of a couple percent points or less in interest rates can cause big increases

in federal debt payments.

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