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> The risk now is more inflation and further rate increases. Inflation has cooled not mainly from intervention but market restoration. Can you expand on this p
by MuffinFlavored 3y ago
> The risk now is more inflation and further rate increases. Inflation has cooled not mainly from intervention but market restoration.
Can you expand on this please?
- hattmall 3y agoRight now there are two contributing factors to inflation. Increased money supply is the biggest one. Second is the actual shortage of goods production which we are still seeing some long tail effects of from covid shutdowns. The slowing of inflation has been because we are getting caught up with goods production. There is still 1.7 trillion in Reverse Repos. The increased rates have been able to draw some of that out into long term treasury products. Which is great. But it's still astronomically high.