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> consumers Consumers take out loans, that's a fact. Interest rates are lower, that's also a fact. Therefore, the money is making it to consumers. If the Fed
by MiroF 6y ago
> consumers
Consumers take out loans, that's a fact. Interest rates are lower, that's also a fact. Therefore, the money is making it to consumers.
If the Fed is able to expand the monetary supply without inflation, then that is a good thing (again) and the Fed should continue doing so until inflation does move.
- aeternum 6y agoHave a significant number of consumers taken out new loans? What percentage of consumers actually benefit, especially if they do not purchase a new home? >If the Fed is able to expand the monetary supply without inflation, then that is a good thing Expanding the money supply alone does not seem like the right goal. Suppose the fed decided to expand the money supply by cutting a check to the top 1%. I wouldn't expect to see any inflation in the pricing of general consumer goods since that segment of the population just isn't competing for those goods.