FED may raise rate by .75%
- Thread starter Ayn Rand
- Start date
Jerome Powell too much of a wimp. Got talked to by Joe Biden recently. He will not dare defy the powers that be. So, expect a 0.50% interest rate hike. He has to raise it a bit to make it seem he is fighting inflation but, way behind the 8 ball. This inflation will continue to rage out of control because oil is inflationary and the sanctions the US and Europe imposed on Russian oil will drive oil prices even much higher. Higher oil prices then, a recession following right after. Demand for products will go down as the US consumer is tapped out. No excess monies for leisure or non-necessities left when you have to pay for food, gas, rent, utilities, mortgage or rent, etc.
If MMT is responsible for these wild ass markets, I will 100% support MMT till the day I die.
You never know. They might choose to hold off the rate increase just to "save the market". The Fed is known to chicken out at the last minute, bowing to pressures from everywhere even from China nowadays LOL when they are supposed to be independent. This is the test of Mr. Powell's nerves and his spine. Does he have the nerve of steel to do what's right or does he have the spine of jello to do what's convenient?
At the end of the day, whatever economic theories all serve the purpose of politics.
At the end of the day, whatever economic theories all serve the purpose of politics.
MMT is no way contradictive of current conditions, and and merely says that when inflation is rising government should spend less. I.e. the suboptimal policy situation that MMT proponents were identifying in the pre-COVID years, where the government needed to spend more, no longer exists; hence nobody mentions MMT because now everybody agrees that we need to reduce inflation, regardless of view on MMT.
And MMT did claim that 0% interest rate was stupid all along, and that gov fical expenditures were a better way to go than inflating financial assets with QE, for inciting real economic activity.
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Agree in toto.
Good...the Yen carry trade is still in effect....Wall Street miwork and stop drinking the Kool aid and take off their rose colored glasses. Maybe the US saving rates will increase....
Völkernomics 101
Akuma
Völkernomics 101
Akuma