Loading ...The money managers are idiots. I heard he’s raising a half point in May. For all we know, the selling off in Bonds and higher rates may be going up against their will, so they act like or imply THEY are in control raising them.
They were originally allegedly fighting a deflation, remember? Trying to get the fake inflation numbers back up to 2%. Well, all my life they have been under stating the true cost of living increases. So when it was below 2% it was probably a positive 5%. On average its been 7% cost of living inflation for decades.
Thats why houses went from $40,000 to $400,000 plus and should be higher are behind the curve. The cops around here make $200,000/yr middle class pay. Their labor union pay is just keeping up with true inflation. The used to make $10,000 per year middle class. Times 20 is $200,000 middle class.
But you are right. If the higher prices are because of shortages, how are higher rates going to create more supply? I guess they want to create a recession to kill or lower demand to match lower supply. Idiots.
I remember when they raised rates to 21%, as if the low rates caused higher prices. But it was removal of the Gold backing on the Dollar in 1971 that lifted the prices to 1980 anyway. Even with the headwind of higher rates, sucking money out of the system. Imagine if they DIDN’T raise rates?? The “inflationary ’70s” would have been a lot worse.