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> salivating at the sound of "inflation" and hastily raising interest rates Please name the times in the last 30 years where the Fed has hastily raised interes
by dragontamer 3y ago
> salivating at the sound of "inflation" and hastily raising interest rates
Please name the times in the last 30 years where the Fed has hastily raised interest rates.
Lemme help you out: https://fred.stlouisfed.org/series/FEDFUNDS https://fred.stlouisfed.org/series/FEDFUNDS
The majority of the Fed's actions has been to drop interest rates.
> rather than reflexively resorting to the same old monetary tricks.
The Fed can _only_ do monetary tricks. That's all they're authorized to do.
- varispeed 3y agoHere is a better graph (although it does not contain recent data): https://www.gzeromedia.com/the-graphic-truth-50-years-of-us-inflation-vs-interest-rates https://www.gzeromedia.com/the-graphic-truth-50-years-of-us-... > The Fed can _only_ do monetary tricks. That's all they're authorized to do. When you only have a hammer, everything starts looking like a nail. Not everything can be solved by monetary tricks, but it seems like they just have to do something for the sake of it, regardless if that means tanking the economy. But hey, once economy dies, there will be no inflation! Genius.
- dragontamer 3y agoYour graph shows declining interest rates as well? You're not posting very much evidence that the Fed often raises interest rates. Your graph clearly shows the 15%, 17%+ federal funds rate of the 1970s, and the 5% we're at today, and the 0% we spent the last decade at. The error is clearly that we've overcorrected and dropped rates too low.
- varispeed 3y agoMore like it acts like a Pavlov's dog.
- dragontamer 3y agoI'm well aware of what psychological conditioning is. But the data you posted does not support your claim.