recent weeks. that s extended a route we ve seen over a couple of months now. and to your point, it s really been a reflection of the fact that investors and economists now really expect interest rates that are not only higher but that are going to stay that way for quite some time. so what we heard from various officials at the federal reserve and policymakers globally is the fact that interest rates are really not coming down any time soon. and typical reactions that the central banks might have globally to volatility and financial markets or an economic slowdown are really not holding up anymore. the fed isn t going to step in as it has in the past. it wants to see the economy cool. you adjustment mentioned we had interest rate hikes. is there an expectation that fed and other central banks can raise them in the months ahead? absolutely.
The Federal Reserve enacted a 0.75% rate hike this week, its largest increase since 1994. But is it enough? Jeffrey Tucker shows you why the Fed really isn’t serious.
the path back to 2% inflation while still retaining a strong labor market. that is our aim. there is no guarantee we can do that. we are committed to using our tools to get inflation to come down. certainly there is a risk. but i wouldn t agree that it s the biggest risk to the economy. the bigger mistake to make, let s put it that way, it would be to fail to restore price stability. dagen: less than reassuring words from the federal reserve chief as inflation hits a high of 8.6% and it s more than a pinch. it s a punch to the gut every day in every aspect of life from gasoline to food to travel. and jay powell s words making it clear that the fed isn t sure it can bring those numbers down without major disruption to the job market and the economy. you know what never happened in 80 years, we didn t have a recession when the fed was trying to lower inflation to that level that he cited. meanwhile, the president not
undertake here. i actually see a lot of similarity between what he is trying to do and the challenges he faced, and the president faces as well. a challenge of there being this desire for a sense of reality of the matter, the fed is notoriously slow moving, it takes a long time for policy to keep up or change the pace of where things are headed. we are in a time where people and politicians as well, want to see things happen quickly, and as you say, the fed showed his difficult medicine we know the side effects will be quite severe. we will not be able to gauge or see the efficacy of that for many months. it is going to take a while, and that is a real challenge here. as you say, and the fed chair said as well, there is what the fed can do, and there is where the fed isn t capable of doing. so the fed is the institution that historically does fight inflation. there are so many forces that you ve had cannot control. the fed is not going to find an and to this conflict in ukraine, it
rewarding the administration with bad behavior. and so it is not just you expect the administration to be political. that s what they do. the fed isn t supposed to be political. the question is now whether .75% increase will be enough to do it. they may have to go even further than that in order to convince the market they re serious. bill: we ll know tomorrow on wednesday. good to see you both. dana: also today is primary day in four states including south carolina where two house races a getting a lot of attention. mark meredith is live in charleston, south carolina today. yesterday hilton head. how are you doing? i m doing just fine because i m in south carolina. good morning. republicans have no shortage of candidates to choose from in today s primary. in the first congressional district with charleston we re watching as the incumbent nancy mace is talking a lot about the economy and believes it may give her an edge over her