Month: December 2021

On Wednesday, President Joe Biden traveled to Kentucky to survey damage from last week’s deadly tornadoes and offer federal support for the victims. More than 30 tornadoes tore through Kentucky and four other states over the weekend, killing at least 88 people — 74 of them in Kentucky — and leaving many others still unaccounted for. The storms demolished homes and downed power lines as temperatures dropped below freezing in Kentucky earlier this week.

Biden visited Fort Campbell for a storm briefing and Mayfield and Dawson Springs to survey the damage. Biden said during his remarks: “The scope and scale of this destruction is almost beyond belief. These tornadoes devoured everything in their path.” Biden also authorized the government to cover 100% of the state’s costs for the first 30 days for all emergency work and services related to the devastation in Kentucky. Biden said four FEMA search and rescue teams were working in Kentucky, and the agency has provided critical supplies including 61 generators, drinking water, housing and meals.

The president also signed two federal disaster declarations for Kentucky over the weekend, providing federal aid for search and rescue and cleanup operations, as well as aid for temporary housing and to help individuals and businesses recover.

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The Federal Reserve decided Wednesday to maintain the existing federal funds rate of between zero and 0.25% amid rising inflation. The Federal Reserve also forecasted three interest rate hikes next year, followed by further increases in 2023 and 2024. A statement on the decision reads: “Supply and demand imbalances related to the pandemic and the reopening of the economy have continued to contribute to elevated levels of inflation. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.”

The Federal Reserve’s Federal Open Market Committee (FOMC) announced it would slowly begin curtailing the monthly pace of its net asset purchases by $20 billion for Treasury securities and $10 billion for agency mortgage-backed securities, anticipating “similar reductions in the pace of net asset purchases will likely be appropriate each month, but it is prepared to adjust the pace of purchases if warranted by changes in the economic outlook.”

The FOMC acknowledged positive job gains in recent months and declining unemployment rate. But it also added that “supply and demand imbalances related to the pandemic and the reopening of the economy have continued to contribute to elevated levels of inflation. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.”

Editorial credit: Paul Brady Photography / Shutterstock.com