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To: blam

In 1981 the fed funds rates were 20% in the attempt to stem inflation. By 1982 they dropped to 9%.


10 posted on 12/10/2021 10:30:45 AM PST by monkeyshine (live and let live is dead)
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To: monkeyshine
In 1981 the fed funds rates were 20% in the attempt to stem inflation. By 1982 they dropped to 9%.

Correct. It was temporary. There are other levers to adjust to stamp out inflation, but tighten monetary policy has rather fast results. Interest rates should be increased now and by a decent amount, so they do not have to be increased to 20% in a couple years. That piece of schiff Carter allowed things to get out of control. We had to wait for Reagan and Volcker fix things. The wait was too long. Volcker wasn't around until late '79, if I recall. We can't wait for Powell to be replaced and for Trump in 2024 to start fixing these problems. We also need to rid the Treasury of that commie Yellen. She's eff'n clueless.

13 posted on 12/10/2021 11:01:10 AM PST by ConservativeInPA ("Goats are like mushrooms. Because if you shoot a duck, I'm afraid of toasters." - Joe Biden)
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