General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPowell just said at his testimony that he is inclined to raise interest rates at 25 basis points
This should lessen some uncertainty whether the Fed was going to raise the interest rate 25 or 50 basis point
SoCalDavidS
(9,998 posts)More disinformation manipulation. They are slow walking the whole thing. Wont be surprised if by 2023 they start lowering it back towards zero. Got to keep the stock market happy.
JohnSJ
(92,404 posts)SoCalDavidS
(9,998 posts)Ill be shocked if there are more than 3.
Johnny2X2X
(19,114 posts)But 25 will help.
JohnSJ
(92,404 posts)Johnny2X2X
(19,114 posts)We have an overheated economy right now. Reigning it in a little is needed. This will also help lower prices. 50 would fight inflation better than 25. But I get the measured action.
House of Roberts
(5,184 posts)if the inflation is caused by broad prosperity of consumers. We don't have that. This is what the Fed screwed up in the 70s, which caused stagflation. In the 70s inflation was a result of external cost increases the same as it is now.
No economist has made a comparison between aggregate demand now and from before the pandemic, but unless aggregate demand is considerably higher now, there is no way raising interest rates will help.
orwell
(7,775 posts)...probably due to the international situation.