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Expectations are tempered by other expectations too. The Fed interest rate is projected to peak at 5 - 5.25% this year, so 6.4% is in ballpark. It's not like a
by pavlov 4y ago
Expectations are tempered by other expectations too. The Fed interest rate is projected to peak at 5 - 5.25% this year, so 6.4% is in ballpark.
It's not like a year ago when inflation was at 8.5% and the Fed was still at zero. That was a very volatile combination.
- game_the0ry 4y ago6.4% is the "headline" number. Some of the statistics that go into the inflation calculation are often manipulated [1]. Likely, the realistic number is much higher and has been for a while. Anecdotally, people only care about the incremental direction of their quality of life - is it going up or going down? The trend for that speaks for itself. [1] https://www.investopedia.com/terms/h/hedonicpricing.asp https://www.investopedia.com/terms/h/hedonicpricing.asp
- tootie 4y agoHeadline inflation, like every other headline number, is an indicator. Not a useful metric that people are going to go to the store and expect everything to cost 6.4% more. They calculate it in a consistent way so we have fixed milestone to measure against. The Fed has a limited set of tools and they can only act on aggregate demand and lending. When it comes to specific outliers (like rent) you need legislation. https://www.pbs.org/newshour/show/white-house-outlines-plan-to-address-nations-soaring-rent-prices-and-protect-tenants https://www.pbs.org/newshour/show/white-house-outlines-plan-...