How does the Fed raising IRs help the economy, the SM and inflation

[mathjak107]

No one knows where that equilibrium point is as we are slowing down too .

Japan made that tragic flaw of increasing rates to high to contain inflation and they tipped into a delflationary spiral they couldn’t get out of

[Aspe4]

Originally Posted by albert648

Inflation = too much money chasing too few goods.

The best solution for this is to produce more goods to meet demand. Neither the Fed nor any government bureaucracy is capable of doing any such thing so the Fed's stuck with raising interest rates and no one in the Biden regime is talking about rolling back government interference so producers can produce more goods.

That said, the Fed should be raising rates - to get back to an equilibrium rate.

What exactly is the interference that's currently in place that is keeping the producers from making more goods?

[albert648]

Originally Posted by Aspe4

What exactly is the interference that's currently in place that is keeping the producers from making more goods?

Democrats do this by existing. When a politician's platform consists of regulating everything that moves and taxing it until it dies, while paying people to stay home on their ass, and doling out more money than God has ever seen to cronies, that politician's very presence on the political scene is the interference that is keeping producers from making more goods.

Broke Back Bankrupt needs to be taken off the table permanently. It's never going to pass anyway.

[SmartMoney]

I am truly concerned that we are all being led off a cliff.

The current Fed has no real experience, for one.

I do not understand why no one is questioning this group at all.

[MKTwet]

Originally Posted by SmartMoney

I am truly concerned that we are all being led off a cliff.

The current Fed has no real experience, for one.

I do not understand why no one is questioning this group at all.

Their jobs aren't at stake they have nothing to fear one way or the other.