4 ms·

Probably too strong of a statement. I don't view this as a huge miss (.2%), and ask anyone you know on a fixed income what this is doing to their retirement. Ul

Probably too strong of a statement. I don't view this as a huge miss (.2%), and ask anyone you know on a fixed income what this is doing to their retirement. Ulitmately, it's the glut of cash out there (IMHO) that is going to need to resolve itself before inflation gets back to a normal level.

guiriduro 4y ago
But it does argue to permit the current tighter fiscal and monetary position to work as it appears to be doing, perhaps too well/quickly, rather than tightening more out of a dangerous over-abundance of caution.
- nine_zeros 4y ago
  Likewise, it gives the FED a chance to say that they'll only raise rates by 50% next time and maybe only 25% in January. Then they can keep high interest rates for a long time while layoffs continue to cause demand destruction.
  - richiebful1 4y ago
    FYI, 50 basis points is a 0.5 percentage point increase, not 50%
danuker 4y ago
Whether it's through consumer price inflation or bond devaluation, retirees are affected by the economy. There is no instrument or policy isolating them from it. The best you can do is diversify.
PopAlongKid 4y ago
>anyone you know on a fixed income what this is doing to their retirement I don't know any retireees on a fixed income. They all get Social Security, which is not fixed. And if they have any signifcant savings, those interest rates are also not fixed, and have been rising a lot recently (recently advertised CD rates at 3-4% are common where I live).
- InTheArena 4y ago
  Fixed is too wide of a term, but there are still people like my grandmother, who is in her 90s, as well as my parents, who have seen huge drops in the ability for their savings to pay for their retirement.
- happyopossum 4y ago
  > They all get Social Security, which is not fixed It’s been fixed since the last cost of living adjustment almost a year ago. Trailing adjustments really hurt when inflation rises this fast.
FollowingTheDao 4y ago
I agree. And buy the 10 Year Bond today, its at a great discount!

guiriduro 4y ago

But it does argue to permit the current tighter fiscal and monetary position to work as it appears to be doing, perhaps too well/quickly, rather than tightening more out of a dangerous over-abundance of caution.

nine_zeros 4y ago
Likewise, it gives the FED a chance to say that they'll only raise rates by 50% next time and maybe only 25% in January. Then they can keep high interest rates for a long time while layoffs continue to cause demand destruction.
- richiebful1 4y ago
  FYI, 50 basis points is a 0.5 percentage point increase, not 50%

danuker 4y ago

Whether it's through consumer price inflation or bond devaluation, retirees are affected by the economy. There is no instrument or policy isolating them from it. The best you can do is diversify.

PopAlongKid 4y ago

>anyone you know on a fixed income what this is doing to their retirement I don't know any retireees on a fixed income. They all get Social Security, which is not fixed. And if they have any signifcant savings, those interest rates are also not fixed, and have been rising a lot recently (recently advertised CD rates at 3-4% are common where I live).

InTheArena 4y ago
Fixed is too wide of a term, but there are still people like my grandmother, who is in her 90s, as well as my parents, who have seen huge drops in the ability for their savings to pay for their retirement.
happyopossum 4y ago
> They all get Social Security, which is not fixed It’s been fixed since the last cost of living adjustment almost a year ago. Trailing adjustments really hurt when inflation rises this fast.

FollowingTheDao 4y ago

I agree. And buy the 10 Year Bond today, its at a great discount!