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The fed needs to raise rates soon. And now Congress wants to spend 3.5 trillion dollars, at a time when the unemployment rate is a relatively healthy 5.4%. The
by kart23 5y ago
The fed needs to raise rates soon. And now Congress wants to spend 3.5 trillion dollars, at a time when the unemployment rate is a relatively healthy 5.4%. The feds goal of full employment this soon is a fantasy, and unrealistic given current conditions. The only thing the public will get is inflation.
And for everyone arguing about who inflation hurts, here is the best categorization imo: it hurts anyone without a mortgage. There are small exceptions, but that's the general rule for 99% of people. Renters are fucked, homeowners who got a low rate are golden.
- mister_tee 5y agoA survey from this week reported that economists expect: Next month, or maybe November or possibly December, the Fed will announce when they plan to start slowing down the rate at which they purchase treasuries and mortgage-backed securities, currently at $120B/month. Once those reach zero they might think about raising the interest rates. The Fed and Treasury know what they're doing more than I do but I hope this doesn't get out of control. Recognizing CPI increases could be attributed to factors outside technical inflation, and they're worried about deflation, there's the whole saying about the inflation genie being tough to put back in the bottle, and sentiment causing feedback making the problem worse. I'm a liberal and I worry if we're currently talking about chip shortages and elevated shipping costs going for at least another year, people are going to see markedly higher prices on everything with possibly little to no pay increases by next year's elections, and the left will get crushed in contended seats. I also worry about people's ability to pay expenses and save of course, not to be cold-hearted and just think politics.