Is it opposite day already?
Lets see - how many medium and small businesses can the Feds bankrupt? They are facing skyrocketing material and labor costs, and now the credit that many need to do business is going to cost them more too...
As long as the Federal Government is paying people not to work, not to be responsible (forgiving student loans), and subsidizing extremely poor behavior - all the interest rate jacking will do is hurt folks and further drive up costs.
I guess a massive nuclear torpedo aimed at the economy (that is already being beat down) is now considered wisdom...
Yardeni is right. The faster the FED raises, the sooner it can stop raising and eventually lower. But .75 is the likely amount for this time. I wish they’d do 1.0% but don’t see them doing that, even though the Bond market is telling the FED to step up the pace.
Which makes Bonds attractive and I’ve been laddering up with them.
Gonna be a face ripper up or down.
they’ll raise the rates for a few months until the recession becomes blinding.
then they’ll lower rates and Biden will start pushing stimulus and the Republican house will punt it, and Biden will start blaming the republicans for the recession. Of course, the Republicans will then fold and vote for stimulus, causing higher inflation.
We’re f**ked.
99% of modern money and banking theories are BS.
Money’s ONLY true function is to serve as a easy way to resolve the problems in bartering. In other words if you have only a cow to take to the market and you want to purchase a goat, a sheep and 10 chickens, how do the various suppliers of the wanted items make change since one cow is worth more than the total of all the desired items?
If you recognize that money is nothing more than a mechanism to facilitate the making of change when trading, you will understand why we have inflation.
The simple reason we have inflation is that there are hundreds of thousands of people, maybe millions, who go to the market place to purchase (trade for) goods when they have not brought anything of equal value to the market place. All they have is paper money of doubtful value.
The cure for inflation is as simple as the reason for it and that is that the government should immediately stop attempting to control the market and the value of money. The federal government should do everything to encourage the production of goods and services. Further, the government should end all social welfare programs and close all government agencies other than those named in the Constitution so that the states can regulate those activities they see fit to regulate. In other words, require everyone to add value equal to what they wish to receive.
The first to be forced to get a real job should be the high paid federal government drones paid high salaries but who never have and never will create any goods or services of value to the market place.
2 year Treasuries at 4+%, not bad. At 5% they would be good for safe money.
WASHINGTON, Sept 21 (Reuters) - The Federal Reserve’s aggressive drive to bring inflation down to its 2% target will take years to complete and come at a cost of notably higher unemployment and slower economic growth, according to projections from policymakers published on Wednesday that cast doubt on prospects for a so-called “soft landing.”