The hope by the Fed is that the increase in interest rates will choke off some of this inflation. I do not think the Fed is prepared to go as hard as they need to; I think they're underestimating how long inflation is going to be around. Inflation is going to with us and it along with a bunch of other stuff is going to bite Biden in the ass. He might want to have a long conversation with former-President Jimmy Carter.
Posts tagged as “economic policy”
In my opinion, the Feds lowering or raising of their rate to banks is more symbolic than the impact it has on the economy. I'm not saying this activity doesn't have an impact, financially, I'm saying it also has a psychological impact as well, that extends beyond the banking system.