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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

#151

Post by nodesocket »

01100011 wrote: post #130
chickenpotpie wrote: post #104

Earlier quoted context omitted.

This is not economics 101 and it's more nuanced than that. Stimulus checks can make inflation go up, but they can also do nothing. And it's important what type of inflation it causes, because California is only giving it to lower income citizens. If you quadruple the price of sports cars by giving every low income person a check, you still helped out the most vulnerable people.

> California is only giving it to lower income citizens. Not last time I checked. I work at a FANG and am definitely not low income yet my wife and I will be getting a few hundred.

Thanks for dispelling all these myths, the California inflation checks are indeed going out to single and married people with very high annual income.

If you don’t think this is to help keep politician’s in office (Gavin) you aren’t paying attention and being naive.

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

#152

Post by trashtester »

seibelj wrote: post #80
mint2 wrote: post #75

Earlier quoted context omitted.

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.

There are three alternativies when supply is short:

1) Increase prices until demand matches supply.

2) Price controls, usually leading to empty shelves.

3) Rationing.

1 is preferrable in 99% of cases. 2 is always the worst. 3 is needed during extraordinary times, such as when a country is in an all-out war.

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

#154

Post by kingkawn »

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.

never have I seen someone so immediately disqualify themselves from being taken seriously in a conversation

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

#155

Post by JumpCrisscross »

paulpauper wrote: post #140
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…

If prices rise 8% yoy and then 2% the next year, the stated inflation rate is 2% even though the 8% is locked in. So there is both higher price levels yet low inflation. Weird how inflation works.

> the stated inflation rate is 2% even though the 8% is locked in

This is how numbers work? Also, the statistic is a price index. Inflation is calculated off those indices. And most contracts considering inflation link to price levels, not their deltas.

To the degree there is fuckery it’s in how the media reports inflation. One or two arcane statistics are taken as a barometer of reality in every state, for every product, across income levels.

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

#156

Post by mint2 »

seibelj wrote: post #80
mint2 wrote: post #75

Earlier quoted context omitted.

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.

There isn’t a shortage of many items that have had large price increases like oreos. There is no shortage on a lot of items but the companies see opportunity to raise prices at will in the current climate simply because they can

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

#157

Post by [deleted] »

saurik wrote: post #125
pbk1 wrote: post #103

Earlier quoted context omitted.

> if housing is far and away the best investment you can possibly make, both in the short, medium, and long-term. citation needed? genuinely curious - are there studies about long-term returns from housing vs. other asset classes (namely public equities)?

I did a Google search for "long-term returns from housing vs. other asset classes" (purposefully using exactly what you typed here to show how easy this is) and found a ton of references showing this is an overly-strong (and even somewhat "debated") claim but (as far as I am concerned) right enough for a discussion forum (and remember a lot of people aren't in a good mental position to own stocks but have to live som…

[deleted]

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

#158

Post by [deleted] »

heartbreak wrote: post #91
nimbius wrote: post #41

Earlier quoted context omitted.

I think you're right, but I'm a little pessimistic after covid relief and the 08 crash. we have 9.1℅ inflation and the damage control from the reigning party trying to explain away an obvious recession makes quarter point increases seem like performance art. student loans are already such an untenable debt bubble that the same potus that stumped for their perpetuity is now forgiving them. auto loans are an equally pr…

The President is hardly forgiving student loans. So far the government has only forgiven loans of students who went to scam schools.

[deleted]

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

#159

Post by benjaminwootton »

I wonder if people are starting to question if the magnitude of the Covid response was justified now the bill is becoming due?

Is anyone willing to put their head above the parapet of supporting the shutdowns and now realising it wasn’t worth the cost?

Huge inflation, generational debts, increased poverty, broken systems left right and centre etc etc.

Or does Putin get all the credit?

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

#160

Post by honkler »

Victerius wrote: post #101
mjr00 wrote: post #87

Earlier quoted context omitted.

> It's too difficult to curb demand for things like food and housing if the population is growing. It's also difficult (impossible) to curb demand for housing if housing is far and away the best investment you can possibly make, both in the short, medium, and long-term. Unfortunately, so many people in the west have their net worth tied up in their homes that policies directly targeting property values is political s…

> It's also difficult (impossible) to curb demand for housing if housing is far and away the best investment you can possibly make, both in the short, medium, and long-term. Rapid population decline. The coronavirus helped in this regard.

not when you want to import the rest of the world. I mean immigration, ofcourse.

Now before downvoting, understand that exactly this has been the strategy of canadian government to keep property prices up.

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