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They started raising rates but then Trump successfully bullied the Fed. Though inflation had remained low, so it's not clear that it was necessary to raise rat
by QuesnayJr 7y ago
They started raising rates but then Trump successfully bullied the Fed.
Though inflation had remained low, so it's not clear that it was necessary to raise rates.
- seanmcdirmid 7y agoInflation remains low? Seriously, I have no idea how they are computing that rate when asparagus is $4.99/pound these days. It seems like low rates feed the housing bubble nicely, and if housing costs were more adequately represented in the CPI, it would be much higher.
- QuesnayJr 7y agoHousing costs are reflected in CPI, as imputed rent. I couldn't find the exact weights with a quick search, but IIRC housing costs are around a quarter of the basket. Asparagus is less than that.
- throw0101a 7y ago* https://fred.stlouisfed.org/series/FPCPITOTLZGUSA https://fred.stlouisfed.org/series/FPCPITOTLZGUSA If you doubt the official numbers, the Billion Prices Project goes out scrapes price data, and it matched pretty well with the CPI: * https://en.wikipedia.org/wiki/MIT_Billion_Prices_project https://en.wikipedia.org/wiki/MIT_Billion_Prices_project