Federal Reserve to increase interest rates by 75 basis points

Post by [deleted] » Wed, Jul 27, 2022, 7:04 PM UTC

colinsane wrote: post #116

vorpalhex wrote: post #55

Earlier quoted context omitted.

Inflation hurts labor, not the wealthy. Bill Gates doesn't care if his groceries are 10% more expensive. Inflation is outpacing wage increases so effective wages are actually lower in terms of buying power. Housing is getting more expensive at a faster rate than wages are increasing. If you are pro-labor you want the fed to aggressively raise rates because that makes life harder for business.

> If you are pro-labor you want the fed to aggressively raise rates because that makes life harder for business. the fed presents its goals as balancing low unemployment against low inflation. any projections for unemployment have it increasing as the fed tightens. i haven’t seen anyone say who these newly unemployed are, nor where they end up. but if the tradeoff were “low unemployment, but those at the bottom of th…

Post by JumpCrisscross » Wed, Jul 27, 2022, 7:04 PM UTC

mint2 wrote: post #156

seibelj wrote: post #80

Earlier quoted context omitted.

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

Post by notch656a » Wed, Jul 27, 2022, 7:05 PM UTC

UncleOxidant wrote: post #42

nodesocket wrote: post #10

Now if we can only get states (like California) to stop giving out stimulus payments (they literally calling it inflation stimulus; learn economics 101) and drop student debt forgiveness nonsense. The fed is trying to curb inflation, while politicians are trying to get re-elected at any cost, fighting the fed.

> Now if we can only get states (like California) to stop giving out stimulus payments (they literally calling it inflation stimulus; I agree with you on this. They're ostensibly to help people afford to buy more gasoline. We should let the high gas prices change behavior instead. > drop student debt forgiveness nonsense. Not sure I agree with you on this. While I don't think it would be a great idea to forgive all s…

Post by SilasX » Wed, Jul 27, 2022, 7:07 PM UTC

jerf wrote: post #117

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…

I've seen some people speculating that you could see a very complex mix of inflation and deflation, where things that everybody needs to buy would inflate (food, energy), and the optional things that people can cut out of their budget (expensive cars, boats, proportional to the ability of people to do without, do less, or defer purchases) could see heavy deflation. This wouldn't be good for the economy at all, of cou…

Post by mjr00 » Wed, Jul 27, 2022, 7:07 PM UTC

goatcode wrote: post #148

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…

The sad thing is that individual landlords are among the most responsive to tenant needs, while corporate landlords often are sons of Hell who should be Thanos-snapped out of existence.