I would prefer to attach an interest rate chart to this post but alas.... 2022 January 1: Federal interest rate - 0.08% 2023 August 1: Federal interest rate - 5.33% Reference link: https://fred.stlouisfed.org/series/FEDFUNDS I speculate, all of us know that an economy which flourishes at zero interest rates for years is not going to do well with a 5% rate hike over 18 months. It's obvious. That is rough handling. You aren't going to have a long term economy with this type of short term thinking. Any business structured around low rates is going to struggle at medium rates without considerable adjustment. That means, all businesses will struggle. It's also obvious that rates can be increased, just not this quickly. Rates could go up a half percent per year for a decade without cratering the economy. Business will adjust over time, if allowed. After all, rate changes directly affect business and people. The question this thread asks is this: Is Jerome Powell aware of the economic toxicity of his jarring interest rate changes or does he have ulterior motives? Any comments appreciated.
WELL.....I have never seen a FED Chair constantly TRASHING the markets like he does. At the same time he says nothing and sees nothing when it comes to toxic out of control government and government spending. So....my vote....yes. I dont know if he has an ulterior motive or if he is just supremely moronic and a lock-step member of the Washington DC elites. Either way the end result is the same....so...I guess it does not matter.
LOL...I think StockJock-e kind of sums it up. I think we all "hope" that policy makers have some knowledge and common sense, but then we see them in action and realize our pockets just don't run deep enough to have that kind of influence. The lobbyist rule....not only with elected officials, but those appointed to positions. So, yeah there are motivations, back door deals, and favors all around us. We just have faith and belief that we will somehow always overcome. The strange, but good news....somehow with all of the above, we are able to still invest and carve out a pretty good life still...in America. Keep on moving forward despite all that is thrown at us.
Perhaps both. "Yes" for the reasons stated. "No" for slowing growth and controlling inflation. I guess the key would be to take the FED's actions out of the equation and see what an untampered with free market economy would have achieved.
