The price of assets like stock, real estate, and bonds is a function of the risk-free rate of return. So, while the nominal value of assets goes down as the int

The price of assets like stock, real estate, and bonds is a function of the risk-free rate of return. So, while the nominal value of assets goes down as the interest rate goes up, this change is temporary. When the interest rate goes down, the prices will go back up. And of course, this is just a change to the nominal value. Shareholders still own their companies. Bond holders still have their cash flow, etc. The Fed has expressly stated that the goal of rising rates is to increase unemployment, or using JP’s words “bring the labor market back into balance.” These jobs aren’t going to magically come back when the interest rate goes down. Gains in union membership are going to be wiped out, and union membership is a form of wealth for labor. And the messed up part is, the ultimate goal is to decrease demand. There are other ways to decrease demand, like raising taxes, for instance. But that is not suitable for the railing class. The poor must suffer (literally JP said that many people must suffer to tame inflation, and he wasn’t talking about the wealthy).