4 ms·
Fed printed crazy amount of dollars. I am not confused at all why we have inflation. I am confused why Fed is not rising interest rates which should never go be
by slaw 4y ago
Fed printed crazy amount of dollars. I am not confused at all why we have inflation. I am confused why Fed is not rising interest rates which should never go below 2%.
- iso1631 4y agoFed printed crazy amounts of dollars since 2008 and didn't drive inflation High oil prices, restricted supply chians from covid do drive inflation
- deleted 4y ago[deleted]
- hcurtiss 4y agoAbsent supply constraints (putting aside the fact that's another way of saying demand exceeds supply), do you believe there is any point at which printing money drives inflation? If yes, at what point would you say it would? See the M1 graphic linked above.
- keyme 4y agoEverybody is trying to explain this away with Russia, Covid... I'm not even following the excuses anymore. It'll be climate change soon. But that's ridiculous. Literally the only way to have inflation is if the Fed chooses to cause inflation, or not to resist inflation, of which it has done both in the last few years.
- daenz 4y agoIs this an accurate representation of the situation? https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL
- brianbterry 4y agoIts not because there is a series break when M1 was redefined in May 2020. See No.5: https://www.federalreserve.gov/releases/h6/h6_technical_qa.htm https://www.federalreserve.gov/releases/h6/h6_technical_qa.h...