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> With respect to inflation, that’s being directly addressed. Please explain. I don’t understand how that’s true. In last night’s SOTU President Biden said in
by lowkey 5y ago
> With respect to inflation, that’s being directly addressed.
Please explain. I don’t understand how that’s true.
In last night’s SOTU President Biden said inflation was mostly due to car prices or something equally silly. I don’t see any nation seriously addressing inflation which is officially 7.5% but I believe to be much higher for most.
- anonymoushn 5y agoI think there are multiple interest rate hikes planned for this year and the fed will cease marginal asset purchases (but not sell assets).
- lowkey 5y agoWhat if I told you that multiple 0.25% interest rate hikes are unlikely to meaningfully counter 7.5% inflation? The last time the US had inflation this high Volcker had to raise rates to double-digits in order to break the back of inflation. Also, don't forget that 20% of all USD ever printed were printed in the past year and the Fed has made no claims that they plan to taper the money printer anytime soon.
- WoahNoun 5y agoThe 7% inflation number is measured as an increase in prices in consumer goods. Used car prices are up >30% and are a significant piece of consumer spending.
- rswail 5y agoPerhaps because the demand for vehicles post COVID is exceeding supply. However, is it just drawing forward future demand, which would mean the inflation is temporary? I mean after a 2 year recession caused by the pandemic, in terms of large consumer items, like vehicles, you'd expect that. People want/need to start travelling again.