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One of the (many) things I don't really understand is why whether the fed will raise interests rates or not is somewhat of an open question - Does anyone think
by mupuff1234 5y ago
One of the (many) things I don't really understand is why whether the fed will raise interests rates or not is somewhat of an open question - Does anyone think these psychological games end up helping the economy long term?
You'd think that in such a system stable planning & execution would one of the more important aspects.
- maxbond 5y ago> Does anyone think these psychological games end up helping the economy long term? Color me undecided, but I thought this argument was interesting. It's not directly related to the Fed, but it is about using mind games to benefit the economy. https://www.interfluidity.com/v2/2669.html https://www.interfluidity.com/v2/2669.html
- sokoloff 5y agoIt’s a pivotal question because so many things are coupled to it (tightly or loosely). If you guess correctly and position your investments to be helped by the next Fed announcement, it’s worth real money. Note that no amount of changing the “openness” of this will help. If the Fed commits to announcing policy earlier, they make that commitment with less information and merely change the date on which investors’ outcomes are determined; there’s still value in predicting before whatever the new date is.