The US Federal Reserve again has raised interest rates:

Federal Reserve hikes interest rate despite bank turmoil
March 23, 2023
WASHINGTON (TND) — The Federal Reserve raised interest rates for the ninth time to the highest levels for federal funds rates since 2007. This is a move to help curb inflation amid the collapse of two U.S. banks.

Director of General Economics and Trade at the Cato Institute Scott Lincicome joined The National Desk’s Jan Jeffcoat to discuss.
“It just got tougher because the banks are going to be tightening credit conditions already but the Fed is still worried about inflation,” he said. “Investors are going to be struggling with the same type of uncertainty the Fed is struggling with trying to balance that inflation-fighting with not causing the economy to really seize up and tip us into a deep recession. https://cbsaustin.com/news/nation-world/federal-reserve-hikes-interest-rate-despite-bank-turmoil-director-of-general-economics-and-trade-cato-institute-scott-lincicome-curb-inflation-investors-credit-bank-collapse-federal-funds

It is believed that it was the raising of interest rates that has caused the turmoil in the banking sector, and specifically the problems for Silicon Valley Bank (see VOA: From Wine Country to London, Bank’s Failure Shakes Worldwide). So, yes, there looks to be increased risks of bank failures with the Fed’s latest interest rate hike.

Michael Snyder posted the following:

Are They Actually Trying To Crash The Economy On Purpose?
March 22, 2023
They actually did it. The Federal Reserve just raised interest rates by another 25 basis points right in the middle of a major banking crisis. I honestly do not understand what Fed officials are thinking. They had already blown a 620 billion dollar black hole in the balance sheets of U.S. banks by raising rates so aggressively, and that resulted in the second and third largest bank failures in U.S. history earlier this month. Apparently they are not yet satisfied with the carnage that they have caused, and so they have decided to make things even worse. What we are witnessing is either extreme incompetence of epic proportions, or they are trying to crash the economy on purpose. …
The fact that it was a “unanimous decision” should greatly alarm all of us.
Isn’t there a single voice of reason left at the Fed?
The last time the Fed raised rates like this was just before the financial crisis of 2008.
And we all remember what that did to our banking system.
But the Fed insists that this time is different. In fact, we were just told that our banking system “is sound and resilient”…
“The U.S. banking system is sound and resilient,” the Fed said. “Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks.”
Of course banks don’t tighten the flow of credit when things are good.
They tighten the flow of credit when they get into trouble. …
Higher interest rates are already crushing economic activity from coast to coast, and they are battening down the hatches.
The “experts” at the Fed are assuring all of us that they know exactly what they are doing, but the truth is that they have lost control. http://theeconomiccollapseblog.com/are-they-actually-trying-to-crash-the-economy-on-purpose/

While the Federal Reserve may not actually want to purposely crash the economy, it clearly wants to slow it down. And the way it is going about it will cause pain.

Actually, the head of the US Federal Reserve has been pushing the narrative that by causing pain, the Fed can tackle inflation (see ZH: Powell Warns Of “Economic Pain” From Tightening, Says “Historical Record Cautions Against Loosning Policy Prematurely” World Bank warns of stagflation).

While increasing interest rates may, for a time, help the inflation rate, government deficit spending is an underlying cause.

Since I expected more deficit spending under the Biden-Harris Administration, I put the following in my book Biden-Harris: Prophecies and Destruction:

Make no mistake about it — massive inflation is coming.
The U.S.A. dollar will ultimately crash and be worthless. That “pride” of American power will be broken (cf. Leviticus 26:19). …
Inflation will eventually hit the U.S.A. extremely hard.

And, one day inflation will be much worse it is than now.

Slowing down the economy to deal with inflation by raising interest rates causes other problems.

Some are concerned that raising interest rates, which is what Fed chair Jerome Powell has been advocating, may push world economies into stagflation or worse.

Yet, it is not JUST deficit spending that causes price inflation–there are also supply and demand issues.

Some, like World Bank President David Malpass point to increasing output instead of moving towards stagflation via higher interest rates and an economic slow-down is a better way to proceed: https://www.bloomberg.com/news/articles/2022-08-26/world-bank-s-malpass-worries-stagflation-persists-on-weak-supply

If the USA government really wanted to reduce the pain of inflation, particularly among lower income consumers, it could do at least two things.

First, it could open up more oil drilling in the Gulf of Mexico, off the California coast, and in Alaska. This would not only bring down the price of gasoline and fertilizer, but also would reduce transportation costs of food and other goods. Its ripple effect over the world economy would cut oil costs, and hence help reduce inflation in other countries.

Second, the USA government could increase incentives for farmers to produce more food. This would directly reduce food price inflation as well as increase the amount of food. This, in turn, would help the world food supply which has been impacted by drought, flooding, the Russia-Ukraine conflict, and other factors.

Food is a basic need. More could be produced.

Yes, if there is more supply this would help reduce the inflation rate as well as generally improve the economies of those that produce more.

But that does not look to be what the “experts” in the USA are working towards.

That said, the Bible points to food shortages and food price inflation:

5 When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. 6 And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine.” (Revelation 6:5-6)

The prophecy of the third horseman of the Apocalypse is starting to come to pass.

If government leaders believed the Bible, they would be willing to take a lot of steps that they seemed to have overlooked.

That said, related to inflation, the Continuing Church of God (CCOG) put together the following video:

15:26

Inflation: When Money Fails
Inflation has been higher in 2022 than it has been for decades in the USA, Europe, and many other lands. What are some of the disruptions that inflation can cause? What about hyperinflation affecting places like Venezuela? Did the Book of Haggai predict inflation? Is food price inflation associated with the ride of the third horseman of the Apocalypse? Does sin and government mismanagement cause inflation? Are there physical things one can do about inflation? What about storing food or buying gold? Will gold outlast the USA dollar? Why might some throw their gold in the street as Ezekiel prophesied? What should God’s people do about inflation? What did Jesus teach about food worries? What about seeking the Kingdom of God? Steve Dupuie and Dr. Thiel cover these matters.

Here is a link to our video: Inflation: When Money Fails.

Jesus warned of famines (Matthew 24:4-8) as part of the beginning of sorrows. The Book of Revelation warned about food shortages and food price inflation associated with the ride of the third horseman of the Apocalypse (Revelation 6:5-6).

Looking to increase food and energy production would seem to better solutions than raising interest rates, but that does not seem to be a high priority for the US Federal Reserve, the Biden-Harris Administration, nor most of the politicians in Washington, D.C.

The Bible warns of food shortages and food price inflation, but leaders who despise the Bible do see what is happening or what will happen.

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