In this Feb. 5, 2018, file photo, the seal of the Board of Governors of the United States Federal Reserve System is displayed in the ground at the Marriner S. Eccles Federal Reserve Board Building in Washington. (AP Photo/Andrew Harnik, File)

OAN Newsroom Contributor Annyatama Bhowmik
UPDATED 1:30 PM PT – Wednesday, December 14, 2022

The Federal Reserve has increased the federal funds rate by 50 basis points, marking the highest increase since 2007. Its benchmark was raised from a 4.25% to a 4.50% target range.

On Wednesday, the Federal Reserve slowed its campaign to cool the economy by raising its benchmark interest rate by 50 basis points. This increase comes amid early indications that persistently high inflation is finally beginning to decline.

This decision, made during the two-day Federal Open Industry Committee meeting, is good news for the housing market since it can cause mortgage rates to drop. The housing rate has suffered recently due to persistently high property prices, which in turn has made purchasing difficult for prospective buyers.

The Fed began its campaign to combat rising inflation in March by raising the benchmark rate by 25 basis points. Following that rate increase, there were four consecutive increases in the months of June, July, September and November.

The Federal Open Market Committee said that future hikes should be expected.

“The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time,” a representative from the committee said.

According to their median forecast, Federal officials anticipate that rate reductions are likely to start in 2024. However, they will be gradual.

In a statement, Treasury Secretary Janet Yellen said that she expects inflation to significantly decline by the end of next year.

The Fed has shined light on the unemployment rate and on the growth of the economy. By the end of next year, Feds predict that the unemployment rate will increase from 3.7% to 4.6%. This number is based on the culmination of the Feds strong attempt to control the skyrocketing inflation rate.

Fed Chair Jerome Powell is anticipated to reveal further details about the Fed’s plans. The Federal Open Market Committee has two meetings scheduled for early 2023.

The post Mortgage rates may decline as a result of the Fed’s 50 basis-point hike first appeared on One America News Network.

SAN FRANCISCO, CALIFORNIA California Gov. Gavin Newsom speaks to union workers and volunteers on election day at the IBEW Local 6 union hall on September 14, 2021 in San Francisco, California. . (Photo by Justin Sullivan/Getty Images)

OAN Newsroom
UPDATED 12:51 PM PT – Wednesday, December 14, 2022

California Governor Gavin Newsom warned that President Joe Biden’s plan to reverse Former President Donald Trump’s border policies could have dire consequences on his state on Monday.

The Biden administration’s plan to lift the Trump-era Title 42 policy, which allows border officers and police to expedite the process of expelling illegal immigrants is facing a lot of criticism. The most recent and notable of which is from Governor Newsom (D-Calif.).

“What we’ve got right now is not working and is about to break in a post-42 world unless we take some responsibility and ownership.” Newsom said in interview.

The California governor claimed that the current administration is sending more migrants to California than anywhere else because the state is “taking care of folks.”

“We’re already at capacity at nine of our sites. We can’t continue to fund all of these sites because of the budgetary pressures now being placed on this state and the offsetting issues that I have to address,” Newsom continued. “The reality is, unless we’re doing what we’re doing, people will end up on the streets.”

This comes as a surprise given Newsom’s background of supporting policies that accommodate and expand protections to illegal migrants coming to California.

It is estimated that about 22% of California immigrants, which is around 11 million, are in the U.S. illegally.

In January, the Democrat unveiled his 2022-23 budget plan for the state that includes health care benefits for low-income residents. Also listed on this plan are illegal immigrants.

Many speculate that this is the first step in Governor Newsom’s plan to challenge Biden in the next presidential election.