4 ms·

The dollar is losing 8% a year of purchasing power at the moment.

• reaperducer 5y ago
  I wonder what the percentage loss was from previous points devaluation. If dollar purchasing power is down 8%, but the points devaluation is 50%, then turning the points into coupons makes a lot of sense.
• kube-system 5y ago
  It already has devalued 8% (well, 7.5%). There aren't official numbers for what it is doing currently; it's an observation of history, technically speaking. Most economists believe this was the peak and that 2022 will bring significant declines closer to the Fed's target. And if not, the expectation is that the Fed will take action.
  • dragonwriter 5y ago
    > Most economists believe this was the peak and that 2022 will bring significant declines closer to the Fed's target. And if not, the expectation is that the Fed will take action. The Fed already started taking action to reel in QE, and is pretty universally expected to hike rates in mid-March (right about the time QE stops on the current schedule.) The disagreements now seem to be about whether it is most likely to be a quarter- or half-percentage-point hike. Even if the drivers of inflation policy exogenous to monetary policy remain at the same level, this should cut inflation.