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What is the fed going to do about inflation?
- Thread starter gunner_trader
- Start date
Inflating wages are good if you have inflating prices.
Inflating wages are good if you have inflating prices.
Long overdue. Good trend.
Inflation is the highest in the last two decades. High energy and food prices are a major reason and Covid doesn’t seem to be stopping.
That's wonderful. Central banks have been trying to increase inflation since 2009 they finally got some.
The concern of course is the possibility of entering a wage-price spiral. I don't think that's likely here. But since an increase in demand is generally good, but a bottle neck in supply is bad, it seems the effort should be focused on increasing supply and making markets more competitive. I'd look at regulatory capture and see if there are places where that can be addressed via legislation.$81 crude oil price? Slap to the face of Fed. CL price will keep climbing. How much more oil Biden can release?
Americans are in big trouble, high wages and high inflation.
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Rates would have go up to a lot to suppress spending. 4 moves of 1/4 per cent as being suggested will not affect spending.Fed must control the currency flow by raising rates. People will spend less and park funds more that squeeze the inflated bubble to a greater extent.
Technically, the Fed could quickly tighten money which would lower demand. But that would also create a recession.If nurses, airline pilots, school teachers all call out sick, how will schools, airlines, hotels and stores operate? They will have to pay more for temporary help. Some people just quit and seek better paid jobs.
What can the Fed do about this?
Technically, the Fed could quickly tighten money which would lower demand. But that would also create a recession.
Honestly they should probably just do that, rip the bandaid off and destroy everything. Yes I like playing short why do you ask.
Technically, the Fed could quickly tighten money which would lower demand. But that would also create a recession.
Not really. If a lot of people have cash in the bank, 0.5% to 1% rate increase does not do a thing. People do not travel, much, do not go to malls, restaurants, bars outdoor activities much. Not a lot people and businesses borrow money now. This will only impact the speculative purchases somehow. Like crypto, MEME, tech stocks and houses.