In this fighting of inflation, Fed is still kicking the can down the road by not doing QT. Fed balance sheet has increased from 1T to 8T since 2008, while US GDP has only increased from 15T to 23T in the same period. It seems impossilbe for me that they can fight inflation by only rasing interest rate.
Can Fed fight inflation without QT?
- Thread starter CoolTrader
- Start date
Seems like they're going to try.
They cannot especially since they are always behind the curve.
Compared to aggressive rate hike, QT so far is moderate.
That's called "moving the goalposts".
Do a little reading of what The FED is actually doing in regards to QT, rather than making empty statements.
The Fed has been steadily raising rates and will probably push the economy into recession by late next year if not sooner.. That will cool inflation! However there are other thing that should have been done, and still could be. Number one would be to cancel the Trump tariffs. Could have been done by Biden with the stroke of a pen. Instead of antagonizing China when we need their help, work with them to increase supply and competition. Adopting Single payer Medicare for everyone and Pharmacist prescribed medications, as in every other country on earth, would take a huge bite out of Medical cost inflation. There is also such a thing as "Price Controls" and taxing the hell out of profiteering. Shipping cost increases are a big contributor to inflation. We should have De-Trumped the Post Office before now by dumping Louis Dejoy. The President can't remove him, but Congress could. He may be in violation of Conflict of interest law! -- He's a major shareholder in a post office competitor.
https://www.federaltimes.com/federa...biden-fire-us-postmaster-general-louis-dejoy/
"This month, more than 80 public interest groups led by The Save The Post Office Coalition sent a letter to Biden, calling on his administration to nominate Postal Board of Governors candidates who will hold DeJoy accountable for his “destructive leadership” and advocate for the expansion of USPS services.
Despite the passage of the Postal Service Reform Act, DeJoy still plans to raise postage prices at “‘uncomfortable rates’ around the country,” the groups said in the letter. “Additionally, numerous post office locations are set to be shuttered under his 10-year restructuring plan, potentially impacting thousands of employees during a time of economic crisis.”
Rep. Brian Higgins, a Democrat from New York, has led calls in Congress to remove DeJoy."
The war in Ukraine has made it especially difficult to cool inflation but there are measures that could have been taken that would have helped considerably. Of course a major factor is energy. We've used the Strategic Reserve but are there other measures we could take? The Saudi's need parts for their fighter jets. We need Saudi's to open those oil field Valves. They have shown us, in more than one way, that they are not our friend.
https://www.federaltimes.com/federa...biden-fire-us-postmaster-general-louis-dejoy/
"This month, more than 80 public interest groups led by The Save The Post Office Coalition sent a letter to Biden, calling on his administration to nominate Postal Board of Governors candidates who will hold DeJoy accountable for his “destructive leadership” and advocate for the expansion of USPS services.
Despite the passage of the Postal Service Reform Act, DeJoy still plans to raise postage prices at “‘uncomfortable rates’ around the country,” the groups said in the letter. “Additionally, numerous post office locations are set to be shuttered under his 10-year restructuring plan, potentially impacting thousands of employees during a time of economic crisis.”
Rep. Brian Higgins, a Democrat from New York, has led calls in Congress to remove DeJoy."
The war in Ukraine has made it especially difficult to cool inflation but there are measures that could have been taken that would have helped considerably. Of course a major factor is energy. We've used the Strategic Reserve but are there other measures we could take? The Saudi's need parts for their fighter jets. We need Saudi's to open those oil field Valves. They have shown us, in more than one way, that they are not our friend.
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WELL good thing they are not the lone ranger. Meaning what??
WMT noted they are pushing back against suppliers raising prices[WSJ]
Home prices+ mortgage got so high\ dropping now.
Used cars got so high, prices dropping now.
Again home prices go so hi\ people living in travel trailers, smaller mini homes.
Used cars got so high; people driving those smaller 4 wheeled mules ....................
IBD noted if USPO had put thier retirement funds in stock market/ would be much better than underperforming bonds.
Gasoline dropping also......................