bendog
Diamond Member
Higher rates make middle class purchased more expensive, and that phenomenon tends to cause the middle class to buy less shit, which tends to make sellers sell less shit, which eventually causes prices to fall.How do higher interest rates lower inflation?
But obviously the Fed hasn't got any handle on commodities (stuff like food and mined minerals) and housing.
So, perhaps Milton Friedman didn't have it all figured out. (There are still Friedman videos on youtube if you've any interest in monetary theory and economics)