The Federal Reserve announced that they will be raising interest rates another .75 points on 11/5/22. The Federal Reserve also announced a new tool to combat inflation called ‘Rational Renumbering’. The proposal will see the Reserve Bank adding a 0 to every Federal Reserve Note in circulation. The Federal Reserve hopes that this will help ease inflationary pressures and allow more time to work on the issue of inflation.
The Reserve Chairman said “this effort will see the value of people’s money go up overnight. We will see $5 turned into $50, and $10 into $100, and so on.” The Chairman continued, “will also be raising interest rates another .75 points on 12/2/22 but it shouldn’t matter because people will be able to afford it by that time.”
Critics say that it is a ridiculous attempt to solve the inflation problem and it will create a hyper-inflationary scenario. They say the plan will see the economy grow from a base of $10,000,000,000 in debt to over $100,000,000,000 in debt by the end of 2022. The Federal Reserve Chairman said that the plan is just a short-term solution to help get the economy going again. “We need to get the economy moving by creating an environment where people will spend more and save less. This will create jobs nobody wants, increase GDP, and give people more money to spend on goods and services they don’t need.”
The Bank stated that the value of each note will be the same as before with 0’s added to the back. The new 0’s will not have any value but will serve as a reminder to those who hold Bank Notes that they hold nothing and are completely worthless. The Federal Reserve hopes Rational Renumbering will give them enough time to raise interest rates another 7 points before they run out of money.