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When rates rise in response to inflation, that’s not a “meaningful” return you’re getting, is it?
by closeparen 4y ago
When rates rise in response to inflation, that’s not a “meaningful” return you’re getting, is it?
- de_Selby 4y agoThe point is that having near or below 0 rates has been a terrible policy for almost everyone, just as increasing them in response to inflation is going to hit most people hard now. A problem has been kicked down the road for years, it was always going to blow up in our faces.
- fny 4y agoThe current rate hikes are not due to inflation alone. IMO, Powell wanted to keep raising rates in 2018, but was hamstrung by Mnuchin and Trump who wanted to keep rates low and the dollar weak. The mini market panic at the time did not help. The COVID meltdown is why we went back to zero. Now he has the perfect excuse to return back things to a normal economic mode.