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my take as an amateur that tries to follow this stuff .. the fed seems caught between inflation and QE. The fed has tried to raise rates in the past, and every
by disambiguation 5y ago
my take as an amateur that tries to follow this stuff .. the fed seems caught between inflation and QE. The fed has tried to raise rates in the past, and every time the market has gone down significantly. The fed has recently admitted that inflation is raging and out of control. raising rates seems to be the only tool in the box to combat inflation. so it's a catch-22.
Raise rates > No more cheap debt > market goes down
Inflation runs wild > recession > market goes down
- sudden_dystopia 5y agoCatch-33 if that’s a thing: the fed cannot raise rates too far or else the interest payments due on the US national debt would raise so far as to cause the US to default.