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wolfishlygrinning t1_j4shsoh wrote

Well that's not quite true. The fed rate going up increases the value of a current dollar over a future dollar. That makes investing in future growth less important and current profits more important. Thus all the layoffs and profit pumping.


urgjotonlkec t1_j4si76b wrote

That argument gets trotted out a lot, but it doesn't actually make any sense in the current environment. Real rates are currently negative (inflation is higher than interest rates) so actually future profits are worth MORE now.