4 ms·
Let's break this down. . .the most significant contributor to inflation over the past year has been fuel prices and availability. This leads to reverberations t
by DisjointedHunt 4y ago
Let's break this down. . .the most significant contributor to inflation over the past year has been fuel prices and availability. This leads to reverberations through the economy, such as:
- Increased freight and transport costs, everything that moves from source to destination becomes expensive.
- Most importantly, food and raw material powering all the products we buy as daily expenditures have a significant fuel cost.
The Fed has only one weapon, the flow of funds into the economy. It controls this through the Fed rate as well as instruments under its gambit which give it immense power to purchase assets.
In short, this is not the job of the fed. We have a molecules crisis thanks to war and supply chain issues combined with stupid energy security decisions.