Surging Inflation Clears Way For Biggest Fed Hike In Years

The video discusses the Federal Reserve's decision to raise interest rates by 3/4 of a percentage point, marking the largest hike since 1994. John Lear, chief economist at Morning Consult, provides insights into the implications of this decision on mortgage rates, inflation, and the overall economy. The discussion highlights the lagged effects of rate hikes on inflation, the Fed's credibility challenges, and the impact of COVID relief funds on the current economic situation. Lear emphasizes the importance of the Fed's actions in maintaining economic stability amid rising inflation and supply chain disruptions.

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