4 ms·
I think the idea is that the Fed is trying to tamper demand by softening the economy. Lower demand will inevitably help prices. It doesn't help much though if w
by camnora 4y ago
I think the idea is that the Fed is trying to tamper demand by softening the economy. Lower demand will inevitably help prices.
It doesn't help much though if we get a "rough landing" and people can't afford food/housing because they're out of a job.
- kmonsen 4y agoIt is not true that lower (local) demand will inevitably lower prices. For example if Costa Rica lower oil demand to almost 0 by saying only 1/1000 people could buy gas from now on it would not change the local gas price at all. If anything it could go more up as the fixed costs in infrastructure would be more expensive for each unit sold.