4 ms·

The fed said interest rates will keep being raised until unemployment rises.

• glial 4y ago
  Which is so strange and violates two of their three mandates - maximum employment and moderate interest rates.
  • dasil003 4y ago
    You don't want to fuck around with inflation because at a certain point it becomes a self-fulfilling prophecy (ie. merchants raise prices pre-emptively just because they internalize inflation at a high steady state).
  • CPLX 4y ago
    So strange. It’s almost as if they’ve picked a side in the conflict between supporting labor or capital.
    • roflyear 4y ago
      HN is capital not labor.
      • CPLX 4y ago
        Indeed. We are in fact conversing on a website that is a marketing forum for a multi-billion dollar private equity firm.
    • Aunche 4y ago
      So the low interest rates for the past decade that reduced unemployment must mean that they love labor right?
  • mpalczewski 4y ago
    the mandate is maximum employment and 0% inflation.
  • metapsj 4y ago
    maximum employment is a pandemic period objective. they aren't intending to crush the labor market. the fed has largely behind the curve in addressing inflation.
  • everybodyknows 4y ago
    The Fed has two mandates, not three: https://www.stlouisfed.org/in-plain-english/the-fed-and-the-dual-mandate https://www.stlouisfed.org/in-plain-english/the-fed-and-the-... "... maximum employment and price stability"
• importantbrian 4y ago
  Did the fed actually say this? There were a bunch of investment bankers who did, and it seems like everyone else ran with the narrative. I haven't seen that the fed actually said it. I think all the fed cares about is bringing down inflation, but if the primary factors in inflation are supply related then unemployment doesn't have to go up for inflation to come down.
  • JumpCrisscross 4y ago
    > Did the fed actually say this? No [1]. [1] https://www.federalreserve.gov/newsevents/pressreleases/monetary20220921a.htm https://www.federalreserve.gov/newsevents/pressreleases/mone...
  • yieldcrv 4y ago
    Jerome Powell said this several times to Congress. You’ll be able to find it, I believe in you.
    • JumpCrisscross 4y ago
      > Jerome Powell said this several times to Congress No, he didn’t [1]. The Fed’s statements to Congress are tightly scripted, in part so professionals can pick the meat from such popular nonsense. [1] https://www.federalreserve.gov/newsevents/testimony/powell20220622a.htm https://www.federalreserve.gov/newsevents/testimony/powell20...
      • yieldcrv 4y ago
        tightly scripted to be vague https://www.bloomberg.com/news/articles/2022-09-21/powell-signals-recession-may-be-the-price-for-crushing-inflation https://www.bloomberg.com/news/articles/2022-09-21/powell-si... > Powell told reporters several times that a softer labor market may be necessary to sufficiently bring down demand.
  • mostly_harmless 4y ago
    Yes, but not directly. If you listen to the last FOMC meeting, Powell mentions there will likely be significant weakening of the labor market and a rise of unemployment. As well as his famous "there will be pain" remarks. I don't think he directly said "he won't stop until" though.
• bergenty 4y ago
  This seems like an easily accessible conspiracy theory but I think all the fed wants to do is bring down inflation.
  • ipaddr 4y ago
    Why not pull support for Ukraine let Russia win and ease those tensions
• datadata 4y ago
  I'm not sure why people continue to take what the fed says as being accurate predictions of the future. For example, they said in 2021 that they expected interest rates would be zero until 2024 [1]. They obviously have a lot of real power, but they must be understood to either be deceitful or incompetent given how wrong prior predictions have been. [1] https://www.ft.com/content/3d7704d3-a312-4294-95bc-90233f469ccd https://www.ft.com/content/3d7704d3-a312-4294-95bc-90233f469...