the emperor has no clothes. (JMHO)
Now its official.
Posted 11 May 2022 - 08:42 AM
8.3% official (after massage therapy) inflation number this morning versus 8.2% expected.
Sage Powell is smoking many cigarettes this morning. That is in spite of slight drop in gas prices.
But now China has much lower covid infection rate, and I saw gas prices at new record high at my friendly gas station this morning.
Yellen said yesterday economy will suffer if Roe is repealed.
I thought population increase is a net plus for economic growth?
I must be a dummy. I need to learn from professor Janet Yellen, the previous FED chair.
Edited by pdx5, 11 May 2022 - 08:47 AM.
Posted 11 May 2022 - 09:40 AM
The funny thing is yes they've been down down down and not that they have broken upward everyone thinks that rates are going up up up. Has anyone ever considered we could just move in a trading range for the next few years, say from 1.40% to 3.25% just like the stockmarket did from 2000-2015 basically. There is no way the Fed can raise rates as much as they say or we will move into a depression with the debt out there!!!!
Posted 11 May 2022 - 04:06 PM
The regime in DC and FED both over-reacted to covid pandemic. When it became obvious from data by early 2021 that 99% of deaths from covid were taking place for the people with multiple comorbidities. There was no need to shutdown younger and healthy workers.
So NOW it is like a meth addict who has already overdosed. By feeding her more meth (in this case monopoly money printing by FED and keeping rates low and federal govt spending like drunken sailors) will bring only quick death. Only choice left is let her is to feel pains of withdrawal, causing bends, and convulsions. But she might live another day.
I thought until recently that FED possibly can not raise interest rates. It will cause depression. Now looking at data, it is the only way remaining if US is going to survive. There is just no way to bring down the inflation without belt tightening. Fortunately there is a cushion left in the form of 11.5 job openings and 6 million unemployed. And businesses are making healthy profits. Jacking up interest rates will not cause sudden demise of the economy.