Jump to content



Photo

oopsay, no pivot


  • Please log in to reply
12 replies to this topic

#11 bigbud

bigbud

    Member

  • Traders-Talk User
  • 521 posts

Posted 03 November 2022 - 03:36 PM

Historically... to fight inflation the fed funds rate has to be well above 5%... and we need to see unemplyment rise.

Now we have had 13 years of declining unemployment (ignoring the covid incident), getting to the floor below 4%... like 1969 and 2000.

 

maximum employment, stable prices, and moderate long-term interest rates

... but you cant always have´em all... that would probably be contradictory?



#12 steadyquest

steadyquest

    Member

  • Traders-Talk User
  • 495 posts

Posted 03 November 2022 - 05:39 PM

Apparently one of our forum members is a throwback (with blonde ringlets?)

 

https://www.youtube....h?v=VC3thojIrFc



#13 qqqqtrdr

qqqqtrdr

    Member

  • Traders-Talk User
  • 3,172 posts

Posted 04 November 2022 - 07:06 AM

As a manufacturer if I am producing everything I can with the materials I can get my hands on I need to raise prices to get the materials I need to keep manufacturing and to make a profit.  Let's say I can only make 75% of what I did before the pandemic and my competition back then now have the issue is that they can sell everything they can produce, so now their is enough room for the competition prices will increase.  If I am in the food industry, selling my product at the grocery store, raising prices will only have affect if I can't sell the product that I can produce.  There is little raising rates will do.   In fact the people that were looking to save money for a new house or new car can't afford the big ticket items so there is more money they can now spend on food.