Sufficient_Yak_1939 t1_iufgdsc wrote on October 30, 2022 at 10:36 PM

Reply to comment by MajorProblem50 in Let’s reflect on Jpows rate hikes up until now. by LessTalkMoreRock1

Yeah but they ain’t fighting those things, they’re fighting inflation.

CatticusF t1_iuhmmr6 wrote on October 31, 2022 at 12:19 PM

Fed has said multiple times now that their tools aren’t sufficient to fight inflation and that the actual government needs to pass laws to tackle the underlying causes.

BojackPferd t1_iui99c0 wrote on October 31, 2022 at 3:15 PM

and thus the FETT needs to force the actual senile government to do something by going all bonkers with rate hikes. May i suggest 300 basis points? followed by 100 points each month.

MajorProblem50 t1_iuflm09 wrote on October 30, 2022 at 11:13 PM

ok... so when more hurricanes destroy more homes in florida, jacking up insurance rates even more, how would interest rates solve that?

or Mississippi river no longer a shipping lane, causing the price of soy to double and cost of cattle feed to double, how?

How do rate increase fight the cause of inflation?

wishtrepreneur t1_iufzv2y wrote on October 31, 2022 at 1:02 AM

People buy less so grocery stores cut price in half after expiry date: easy 0% inflation

MajorProblem50 t1_iug1pag wrote on October 31, 2022 at 1:17 AM

Inflation will also force people to spend less.

wishtrepreneur t1_iugs1mc wrote on October 31, 2022 at 5:19 AM

So why cause recession with rate hikes if they want people to spend less?

MajorProblem50 t1_iuj70uc wrote on October 31, 2022 at 7:00 PM

It's the only thing the fed can do. Rate hike is good for the rich. The job economy is too stron. We want cheaper labor and cheaper stuff and it's the big advantage for the rich. Cheaper stuff doesn't matter for any of us if we're going to end up at the soup kitchen and wendy's dumpster.