Jerome Powell And The Federal Reserve Increase Interest Rates For The First Time Since 2018, Sparking Debate Online

Today, head of the U.S. Federal Reserve System Jerome Powell announced in a press conference that the Fed was raising interest rates for the first time in three years. It's been enacted to counter rising inflation in the U.S. economy. The news is already being hotly debated on Twitter by users worried about an impending recession.

According to CNBC, the rate was been moved into a range of 0.25 percent to 0.5 percent, mostly due to the lingering effects of the COVID-19 pandemic and the ongoing Russia-Ukraine conflict. The rate increase will immediately send financing costs higher for many forms of consumer borrowing and credit.

FED DECISION: The Federal Reserve votes to raise interest rates by 0.25%, its first interest rate increase in more than 3 years. https://t.co/YKjkgqi8Ya pic.twitter.com/aWRLjLUZVR

— CNBC (@CNBC) March 16, 2022

Statements made by Fed Chair Jerome Powell were quoted on Twitter, mostly reiterated with skepticism and concern. For instance, he stated during the press conference, "The risk of a recession into next year is not elevated," however, many people online did not believe him. Tweets using this specific quote racked up thousands of like within two hours, demonstrating how some people believed he was lying.

Powell: "The risk of a recession into next year is not elevated".

*Nobody believes you.

— Sven Henrich (@NorthmanTrader) March 16, 2022

*POWELL: PROBABILITY OF RECESSION ISN'T PARTICULARLY ELEVATED pic.twitter.com/t61ovMVII2

— Investing.com (@Investingcom) March 16, 2022

Powell: "Sudden unexpected burst of inflation"

*Should've spent more time on Twitter. We were telling him.

— Sven Henrich (@NorthmanTrader) March 16, 2022

Other Twitter users thought they were seeing inflation sooner than today with events like the ongoing gas price surge making everyone pay more for filling up their tanks. Users humorously cited this as well as other more nonsensical analogies, like referencing Arizona Iced Tea and its notoriously cheap price point.

March 2008
Gas: $3.23 a gallon
Oil: $104.54 a barrel

March 2022
Gas: $4.32 a gallon
Oil: $95.75 a barrel

Don't cite inflation. Cite the damn corporate greed.

— Warren Gunnels (@GunnelsWarren) March 15, 2022

Whoever keeps those Arizona iced teas at $0.99 should be in charge of inflation

— Fifty Shades of Whey (@davenewworld_2) March 9, 2022

Inflation is insane right now.

But that’s just my 3.5¢

— GSElevator (@GSElevator) March 15, 2022

The Fed trying to stop 8% inflation with a 25 bps hike pic.twitter.com/w8tyONdetx

— Joe Pompliano (@JoePompliano) March 16, 2022

The Fed as a unit isn't the only institution receiving the blame. U.S. President Joe Biden is also taking a lot of heat on social media. On the contrary, many believe it is not Biden's direct fault and are instead blaming the overarching events listed prior. Regardless, high profile individuals like Elon Musk have also weighed in on the inflation problem within the country. The rising concern and visible effects are no doubt stirring up a conversation.

The best way to reduce inflation is to change presidents.

Trump: 1.4% inflation.
Biden: 7.9% inflation.

— Lord Julio Gonzalez – juliogonzalez.com (@TaxReformExpert) March 16, 2022

Literally EVERY major developed economy has elevated inflation right now. Not just the US. It was not caused by Biden -- and anyone who says otherwise is trying to manipulate you.

— Tristan Snell (@TristanSnell) March 14, 2022

Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics

— Elona Musk (@elonmusk) March 14, 2022