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IMO the fed should be raising rates a little more aggressively. They should have done a full percent last time and they should consider a full point the next co
by bern4444 4y ago
IMO the fed should be raising rates a little more aggressively. They should have done a full percent last time and they should consider a full point the next couple of times.
A full point raise would demonstrate a stronger commitment to fighting inflation seriously, partly because markets only expected .75. Raising by an extra .25 would not be so significant, but would add a bit more shock to financial markets and show they are taking control and won't just follow what the markets expect, predict and say (they will lead instead of follow).
Already, financial markets are expecting the FED to lower rates in the near future to get out of the recession. I think people (and the markets) that believe so are delusional. Why would the FED lower rates to get out of a self induced and purposeful recession it caused by raising rates. Interest rates will have to stay high for a long time (1+ years) to tamper inflation, inflation will be here for a while.