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even if you add the subsequent increases, they add up to 1.5%. That won't do anything to an inflation of 8% raging right now.
by cm2187 5y ago
even if you add the subsequent increases, they add up to 1.5%. That won't do anything to an inflation of 8% raging right now.
- afterburner 5y agoIf the inflation falls later on, that 1.5 won't look so bad. No reason risk to crash the economy right when it's just starting to recover. Overcorrecting is bad.
- cm2187 5y agoIt has been high for a year already and everything points to it worsening (the 8% doesn't include Ukraine, which will push both energy and food prices up). It is because it is not temporary anymore than the Fed is forced to act now.
- afterburner 5y agoIf you're right, the Fed can always raise it more later. No need to overcorrect. Some moderate inflation is far from the worst thing that can happen.