US FED hikes interest rate by 0.75%   as inflation bites the world...


June 16 (Lagos) - The US Federal Reserve announced that it will raise its key benchmark lending rate by 0.75% in a bid to slow inflation, the highest increase since 1994. Crude oil prices declined slightly but are still very elevated. US President will head to Saudi Arabia next month to request the kingdom's Prince to increase crude oil production so that his hopes of redeeming the US mid-term elections in November are not completely dashed as a result of the economic mess his administration has delivered so far into his tenure. 


The Chairman of the Federal Reserve also tried his best to suggest that the economy is not headed towards a recession. The stock markets rose sharply in the US while he spoke. He said a further rise of 0.75% in the September meeting is likely and that they would review the situation as more economic data comes in. 


There could be a disconnect between the the Federal Reserve and the situation on the ground where everything is much more expensive. This is clearly a move to slow the US economy down without necessarily entering a recession. However some analysts believe that we are already in a recession and things are likely to get a lot worse. 


The war in Ukraine is still on-going as the US continues to send weapons to Ukraine to prolong the war and the US President announced another $1 billion in weapons yesterday. What could have been a swift affair has now been turned into a destructive war where many cities of Ukraine are being turned to rubble although Russia has not targeted the key infrastructure of its erstwhile member state yet. The result of this war is hurting the US consumers from the petrol pump to the grocery bills. It is also hurting the economy of the world including poor African nations like Ethiopia and Sudan that relied in Ukraine for food imports. 


Nigeria's economy is also not spared as cost of imported food items continues to rise. The scarcity of fuel in Northern Nigeria is affecting everything from production to transportation. As the country heads into election mode for next year's Presidential polls, the economic destruction of the past 7 years is everywhere to be seen. The silver lining is that no matter what happens next year, the current oga on the top must vacate Aso rock and that is very bullish signal. 



reporting for easykobo.com on Thursday, June 16 2022 from Lagos, Nigeria
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