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

Reply to comment by Sufficient_Yak_1939 in Let’s reflect on Jpows rate hikes up until now. by LessTalkMoreRock1

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.