Fed Spikes Interest Rates to Curb Inflation, Biden Defends His Policies: 'I Don't Want to Hear Any More of These Lies'

This is the Federal Reserve's third interest rate hike this year and we're only halfway through 2022. Even if it slows inflation, there is concern it will trigger a recession.  

Families coast to coast continue to struggle to make ends meet, from grocery shopping to putting gas in their vehicles. Skyrocketing prices on just about everything is busting budgets around the country.

Americans are now spending about $350 dollars more every month for the same goods and services as last year. Gas is 50 percent higher, groceries up nearly 12 percent, and rent has increased 26 percent.

The dire situation is leaving many Americans unable to pay their bills. 

"It's going to be a stretch so I'm looking for a part-time job at 75," said retiree Marilyn Bailey. 

According to the Labor Department, producer prices rose almost 11 percent last month.

"This inflation is really painful, and it has to come down," stated Mark Zandi, chief economist at Moody's Analytics. "So the only way of doing that is getting those interest rates up and slowing the growth of the economy," 

Experts say that means the cost of credit cards, car loans, and mortgages will rise even more. Many people also report they are already dipping into savings to get by.

Retirement funds are also taking a big hit. 

The S&P 500 Index tied to many 401K's hit bear market territory on Tuesday, falling 20 percent from the recent high. Economists don't believe things will improve any time soon. 

And President Biden dismissed criticism while in Philadelphia on Tuesday, saying that his spending policies, including pandemic stimulus money, are responsible.  

"I don't want to hear any more of these lies about reckless spending. We're changing people's lives," Biden remarked.

***Please sign up for CBN Newsletters and download the CBN News app to ensure you keep receiving the latest news from a distinctly Christian perspective.***