Inflation got you down

[Thinker101]

Not to worry, the Biden Administration has a fix....raise interest rates.

Wall Street is bracing for the Federal Reserve to raise interest rates from near-zero in June after President Biden on Monday picked Jerome Powell to lead the central bank for another four years. Following the announcement, a majority of traders are pricing in at least a 25-basis point hike in June, according to the CME’s FedWatch tool, and about a 62% chance of three modest rate increases over the course of 2022. Another 32% are projecting a fourth-rate hike in December.

Traders gear up for June interest rate hike after Biden renominates Powell

 

[shockedcanadian]

Theoretically that is the way to counter inflation. IF easy money/investment an overheating economy is the problem. The current inflation issues in the U.S and to a lesser degree Canada, don't seem to be based on a booming economy which must be driven by private capital not government cash at this point in such high debt cycles.

If such a rate increase is coupled with little movement in real disposable income or private capital investment in businesses and jobs, it could really be a major lag on the economy for some period of time.

I'm not a fan of high interest rates in principle, I think cheap money should always be the fail over to compete with global low wages. This is especially if what this action is targeting is NOT the primary contributing factor to the current inflation. I hope it works as intended.

 

[Thinker101]

Theoretically that is the way to counter inflation. IF easy money/investment an overheating economy is the problem. The current inflation issues in the U.S and to a lesser degree Canada, don't seem to be based on a booming economy which must be driven by private capital not government cash at this point in such high debt cycles.

If such a rate increase is coupled with little movement in real disposable income or private capital investment in businesses and jobs, it could really be a major lag on the economy for some period of time.

I'm not a fan of high interest rates in principle, I think cheap money should always be the fail over to compete with global low wages. This is especially if what this action is targeting is NOT the primary contributing factor to the current inflation. I hope it works as intended.

Bingo!!!

 

[Thinker101]

Theoretically that is the way to counter inflation. IF easy money/investment an overheating economy is the problem. The current inflation issues in the U.S and to a lesser degree Canada, don't seem to be based on a booming economy which must be driven by private capital not government cash at this point in such high debt cycles.

If such a rate increase is coupled with little movement in real disposable income or private capital investment in businesses and jobs, it could really be a major lag on the economy for some period of time.

I'm not a fan of high interest rates in principle, I think cheap money should always be the fail over to compete with global low wages. This is especially if what this action is targeting is NOT the primary contributing factor to the current inflation. I hope it works as intended.

Easy money may be the problem, except it was easy money from the government which if I'm not mistaken has been discontinued.

 

[Ray From Cleveland]

Theoretically that is the way to counter inflation.

But practically the way to do it is not elect Democrats.

If Trump were in charge he would have never signed onto all that extra unemployment that kept people home. They would have returned to work once their state unemployment ran out and jobs started to become available again as they were since the beginning of the year. That would have prevented a bidding war for employees which would have kept wages where they're supposed to be at.

The more employers have to pay for labor the more they charge for their products or services which of course leads to inflation. The other side of the coin is Trump would have never signed any green pork bill by the Democrats either which again, would have helped curb inflation rates.

 

[toobfreak]

Not to worry, the Biden Administration has a fix....raise interest rates.

BRILLIANT. Hey, let's jack them puppies up and see what happens.

I mean, its not like the old fool can do anything wrong, I mean, we got Trump out of office, right?

 

[Rambunctious]

Groundhog day...we have been here before and seen what democrats do to economies...they make matters worse not better for the people they say they want to help...