Interest rate hikes, both foreign and domestic
Just a day after the U.S. Federal Reserve hiked interest rates by three-quarters of a point, the Bank of England on Thursday raised its key interest rate by half a percent to its highest level in 14 years. The Swiss National Bank followed the Fed on Thursday with a three-quarter-point hike of its own. The aggressive moves are meant to combat inflation, which is creating a cost of living crisis in the United States and Europe. Housing costs are also rising: Mortgage buyer Freddie Mac reported Thursday that the 30-year rate climbed to 6.29 percent this week.
Is there any good news? Gas prices have steadily retreated over the past few months. But the Labor Department reported Thursday that applications for unemployment benefits rose by 5,000 to 213,000. Earlier this month the Labor Department reported that employers had added about 315,000 jobs in August, which is less than the average per month for last year (487,000) but is still strong.
Dig deeper: Listen to Addie Offereins’ report on The World and Everything in It podcast about how rising prices affect food pantries.
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