INFLATION--FED's cutting rates again...

Let the interest rate float and take money making ability out of the hands of governments and this won't happen. Just sayin'.
 
Screenshot_20221023-115340.png
 
UK inflation has topped 10%. Mushy peas and jellied eels are getting expensive.

The Prime Minister resigned; her gov’t has toppled.
 
https://www.cnbc.com/2022/10/24/jpm...ay-fall-further-as-the-fed-raises-rates-.html

  • “I think putting inflation back in a box is very important,” Pinto told CNBC in an interview. “If it causes a slightly deeper recession for a period of time, that is the price we have to pay.”
  • “I don’t think we’ve seen the bottom of the market yet,” he said, adding that corporate earnings expectations were still too high.
  • Pinto, who leads the world’s biggest investment bank by revenue, called cryptocurrencies a small asset class that is “kind of irrelevant” at the moment.
 
How Biden could have warded off inflation

the Fed did start raising interest rates in March of this year. But that was almost a year after inflation began to rise above normal levels. At the end of 2020, inflation was a negligible 1.3%. By June of 2021, it had hit 5.3%, well above the Fed’s 2% target. Yet the Fed did nothing for another 9 months. Why did it wait so long?

There was fevered debate in the summer of 2021 over whether inflation was transitory or permanent. Biden insisted it was transient, and Fed chair Jerome Powell basically agreed.
 
The Fed could 'risk the lives of millions of Americans' by the way it's choosing to tackle inflation, a top Democratic lawmaker says

Sherrod Brown (D Ohio)

It's the Federal Reserve's job to combat rising prices in the country — but a top Democratic lawmaker isn't happy with the way it's choosing to do so.

"The Federal Reserve's tools work to lower inflation by reducing demand for economic activities sensitive to interest rates," Brown wrote. "However, a family's 'pocketbook' needs have little to do with interest rates, and potential job losses brought about by monetary over-tightening will only worsen these matters for the working class."*

"For working Americans who already feel the crush of inflation, job losses will make it much worse. We can't risk the livelihoods of millions of Americans who can't afford it," he added.

*it's good to see there's at least one champion of the working class left in this government.
 
In some boardroom in Mexico, D.F.:

Say, maybe we keep the price the same, just make the bottle around 40% smaller. Nobody would notice...

4dd8da1e-34fc-46f0-b57f-59ba33449733.3ee6f2ec6501770ccbe6629c7a02a500.jpeg
 
Chop said:
https://www.usnews.com/news/us/arti...as-prices-looming-over-sports-biz-concessions

One single 16 oz can of Corona for $10.25... :confused::confused::confused::confused::confused::confused::confused::confused::confused:

jerry-jones.jpg
Click to expand...

I honestly don't understand why anyone goes to an NFL game. Tickets are expensive as hell. Even in a "good" seat, you can't see that well. And if you want to park your car or get anything to eat or drink, you get bent over like a drag queen in a prison for crappy food and beer. Much rather smoke some ribs, get some good beer, and watch the game at home for about 1/100th the cost.
 
Chop said:
How Biden could have warded off inflation

the Fed did start raising interest rates in March of this year. But that was almost a year after inflation began to rise above normal levels. At the end of 2020, inflation was a negligible 1.3%. By June of 2021, it had hit 5.3%, well above the Fed’s 2% target. Yet the Fed did nothing for another 9 months. Why did it wait so long?

There was fevered debate in the summer of 2021 over whether inflation was transitory or permanent. Biden insisted it was transient, and Fed chair Jerome Powell basically agreed.
Click to expand...
The above analysis is wrong. Interest rates were held low to meet woke goals (from WSJ, Feb 2022):

4C7D37AD-BC44-4612-B243-59C218947C21.jpeg
 
Last edited:
Chop said:
How Biden could have warded off inflation

the Fed did start raising interest rates in March of this year. But that was almost a year after inflation began to rise above normal levels. At the end of 2020, inflation was a negligible 1.3%. By June of 2021, it had hit 5.3%, well above the Fed’s 2% target. Yet the Fed did nothing for another 9 months. Why did it wait so long?

There was fevered debate in the summer of 2021 over whether inflation was transitory or permanent. Biden insisted it was transient, and Fed chair Jerome Powell basically agreed.
Click to expand...
This is Larry Summers in Oct 2021:

'Woke' Fed risks losing control of inflation, says former Treasury Secretary Larry Summers


Bloomberg - Are you a robot?
 
Note the Fed didn’t adequately warn investors such as myself that they fundamentally changed policy. I would have acted differently if they did.
 
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