Does the FED really control the many contributors to ‘Inflation?’
Like the old murder mystery movie where it was found that the brake line had been cut ? Hmm . . .
Those brake lines were cut a few years ago by cronies and grifters.
It’s the “SHOW A PROFIT OR ELSE SYNDROME”…..CEO’s and production manager’s need to show increasing profit percentages to justify personal salary increases ("hey, look what a good job I’m doing, the company should pay me more and give me a raise)… wouldn’t it be better to give the workers more money? Wouldn’t raising the worker’s standard of living promote a healthier economy?
An economy that was in shambles just a year ago is expanding at a rate that is far greater than expected. People have money. People want to buy stuff. People don’t care that there’s a worldwide pandemic that has slowed other economies and has crippled some industries. People don’t care that companies didn’t order enough product and/or materials months and months ago, when this kind of economic growth had not been predicted.
“I want my pony, and I want it NOW!”
More demand than supply=inflation. Simple answer: don’t buy anything you don’t need for a while. Learn to be patient. This too shall pass.
‘’pump the brakes’‘? maybe the artist doesn’t drive?
Risk if the Fed waits too long to “pump the brakes”, a recession induced by raising interest rates. Risk if the Fed pumps too early, a recession induced by raising interest rates. Both of these lead to a bunch of job loss. So, you want to guarantee job loss to prevent possible job loss. Learn some econ, Ariail.
The interest rate should have been raised long ago. Tax revenues from the wealthy decreased even more than usual because of things like execs borrowing against stock options to avoid the (already low) capital gains tax.
EVERY TIME the Fed tries to micro-manage the economy it fails. They have tried it, and they know it cannot work: What they can do is like unto managing a swing by hitting it with a feather. Long term CONSISTENT behavior can have an effect. Short term “fixes” cannot. Powell seems to understand this much better than most people, said group definitely including Arial.
No one really believes that a higher interest rate will automatically cut inflation. It may help, over time, or may cause more problems. Caution is called for, and caution is what we are getting. Good.
It’s bidens baby
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