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Federal Reserve to increase interest rates by 75 basis points

federalreserve.gov

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Re: Federal Reserve to increase interest rates by 75 basis points

#71

Post by waythenewsgoes »

seibelj wrote: post #58
mywittyname wrote: post #47

I'm skeptical that interest rate hikes will curb inflation. I'm even skeptical that a recession will curb inflation. We have significant shortages of so many products and services that people rely on and the only way I see the situation improving is if supplies increase, maybe dramatically. It's too difficult to curb demand for things like food and housing if the population is growing. Those are things we just need t…

It's almost like you are encouraging supply side economics... aka... trickle down We need to massively cut corporate taxes, investment taxes, regulations, and all manner of things to increase supply. The government has been attacking business for so long we are in quite the hole.

This doesn't work, when we tried this most recently all it did was increase stock buybacks by large corps. It's just effectively a wealth transfer to those already at the top of the food chain.

Re: Federal Reserve to increase interest rates by 75 basis points

#72

Post by WebbWeaver »

fenek wrote: post #29

I don't get it. The price of gas I'm paying in the US, has dropped by 20% in the last month or so. That seems to indicate that prices are going back to normal. What prices is fed concerned about?

Probably cost of living versus income. Though gas has dropped some may consider it demand destruction.

Re: Federal Reserve to increase interest rates by 75 basis points

#74

Post by CoffeeCollector »

seibelj wrote: post #58
mywittyname wrote: post #47

I'm skeptical that interest rate hikes will curb inflation. I'm even skeptical that a recession will curb inflation. We have significant shortages of so many products and services that people rely on and the only way I see the situation improving is if supplies increase, maybe dramatically. It's too difficult to curb demand for things like food and housing if the population is growing. Those are things we just need t…

It's almost like you are encouraging supply side economics... aka... trickle down We need to massively cut corporate taxes, investment taxes, regulations, and all manner of things to increase supply. The government has been attacking business for so long we are in quite the hole.

You are getting down voted for telling the truth. Every inflation discussion starts with the supply side economics or companies raising taxes, but inflation only happens in reality because of government spending, borrowing, and deficit spending.

Re: Federal Reserve to increase interest rates by 75 basis points

#75

Post by mint2 »

seibelj wrote: post #58
mywittyname wrote: post #47

I'm skeptical that interest rate hikes will curb inflation. I'm even skeptical that a recession will curb inflation. We have significant shortages of so many products and services that people rely on and the only way I see the situation improving is if supplies increase, maybe dramatically. It's too difficult to curb demand for things like food and housing if the population is growing. Those are things we just need t…

It's almost like you are encouraging supply side economics... aka... trickle down We need to massively cut corporate taxes, investment taxes, regulations, and all manner of things to increase supply. The government has been attacking business for so long we are in quite the hole.

Err quite the opposite, recently corporate profits are at highs because part of the inflation has been price gouging. and they can do that because of lax regulations around mergers among other things

Re: Federal Reserve to increase interest rates by 75 basis points

#76

Post by pm90 »

ParksNet wrote: post #66
mywittyname wrote: post #47

I'm skeptical that interest rate hikes will curb inflation. I'm even skeptical that a recession will curb inflation. We have significant shortages of so many products and services that people rely on and the only way I see the situation improving is if supplies increase, maybe dramatically. It's too difficult to curb demand for things like food and housing if the population is growing. Those are things we just need t…

Easiest way to increase labor supply is to immediately increase the retirement age to 70. Welfare and retirement systems across the West are insolvent at current settings anyway.

No. Easiest by far is to relax immigration restrictions.

Re: Federal Reserve to increase interest rates by 75 basis points

#77

Post by codetrotter »

ParksNet wrote: post #66
mywittyname wrote: post #47

I'm skeptical that interest rate hikes will curb inflation. I'm even skeptical that a recession will curb inflation. We have significant shortages of so many products and services that people rely on and the only way I see the situation improving is if supplies increase, maybe dramatically. It's too difficult to curb demand for things like food and housing if the population is growing. Those are things we just need t…

Easiest way to increase labor supply is to immediately increase the retirement age to 70. Welfare and retirement systems across the West are insolvent at current settings anyway.

Idk what the retirement age in other countries is but here in Norway I think it is currently 67.

How much additional productive work do we realistically expect people to be able to supply, from age 67 to age 70?

Re: Federal Reserve to increase interest rates by 75 basis points

#78

Post by chromaton »

mywittyname wrote: post #47

I'm skeptical that interest rate hikes will curb inflation. I'm even skeptical that a recession will curb inflation. We have significant shortages of so many products and services that people rely on and the only way I see the situation improving is if supplies increase, maybe dramatically. It's too difficult to curb demand for things like food and housing if the population is growing. Those are things we just need t…

Prices on raw materials like aluminum, copper, and lumber have been dropping for a little while now.

Re: Federal Reserve to increase interest rates by 75 basis points

#79

Post by sandworm101 »

CoffeeCollector wrote: post #74
seibelj wrote: post #58

Earlier quoted context omitted.

It's almost like you are encouraging supply side economics... aka... trickle down We need to massively cut corporate taxes, investment taxes, regulations, and all manner of things to increase supply. The government has been attacking business for so long we are in quite the hole.

You are getting down voted for telling the truth. Every inflation discussion starts with the supply side economics or companies raising taxes, but inflation only happens in reality because of government spending, borrowing, and deficit spending.

Inflation happens too in markets without governments. Government therefore cannot be the one cause.

Re: Federal Reserve to increase interest rates by 75 basis points

#80

Post by seibelj »

mint2 wrote: post #75
seibelj wrote: post #58

Earlier quoted context omitted.

It's almost like you are encouraging supply side economics... aka... trickle down We need to massively cut corporate taxes, investment taxes, regulations, and all manner of things to increase supply. The government has been attacking business for so long we are in quite the hole.

Err quite the opposite, recently corporate profits are at highs because part of the inflation has been price gouging. and they can do that because of lax regulations around mergers among other things

I'm a huge fan of so-called "price gouging". Without the ability to increase prices the shelves would be bare. This is what happens in all countries with price controls.

You say price gouging, I say protecting society from itself.

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