The Biden administration has outlined a plan to combat rising inflation through a combination of fiscal and monetary policies. Specifically, the administration intends to increase the Federal Reserve’s interest rate targets. This shift would likely impact borrowing costs for businesses and consumers, potentially slowing down economic activity. The White House emphasized the need for a balanced approach to manage inflation, acknowledging potential risks to economic stability. The Federal Reserve is currently evaluating these proposed changes and is expected to provide further guidance in the coming weeks.
Credits: Finance & economics