If there is no recession, why does the Fed keep raising rates?

[Marener]

Does is make sense to keep raising rates when the economy is great?

I dont get it.

Holy cow. Talk about not understand anything about how the Fed operates.

In a recession, the Feds LOWER rates.

The real question should be, if we are in a recession, why does the fed keep raising rates. The answer is that we aren't really in a recession.

 

[LAUGHatLEFTISTS]

I hope every realizes Unemployment is going to spike.

He literally said yesterday they are trying to soften the job market.

This is so people do not have money to spend.

We are so fucked. Jerome Powell is purposefully trashing the economy.

I have not seen my girlfriend Janet Yellin lately. Where is the cult hiding her?

Yoda’s cave.

 

[Mac1958]

Does is make sense to keep raising rates when the economy is great?

I dont get it.

Of course you don't get it. You don't understand fundamental economics. Hannity and Tucker won't tell you the following:

Strong, broad growth pushes inflation, inflation pushes interest rates.

Worse after we've poured $11 TRILLION in stimulus into the economy, even worse when global supply chains break down and take a long time to repair.

Economics 101. High school level.

 

[The Original Tree]

Does is make sense to keep raising rates when the economy is great?

I dont get it.

What kind of insanity raises taxexsby nearly $1 Trillion Dollars with double digit inflation, $3 Trillion in losses in retirements accounts, hires 87,000 IRS agents to squeeze every penny they can out of hard working American Citizens, while importing Millions of Illegal Burdens to our Social Safety Net and with the cost of gas and food crushing working families?

The yearly Interest on The National Debt we are paying is $445 Billion a year. That is absurd.

 

[Independent thinker]

Its not going to work to lower inflation when the white house keeps printing and spending money we don't have....

Yes, we are in a very real pickle. We are probably in a recession now but the dems won't admit it. Anyway, they've got to get inflation down if they want to get re-elected so they will continue raising interest rates to bring down inflation, even at the cost of driving us into a very rock solid recession that even they won't be able to deny. And, the way out of a recession? Spend more money and print more money, which is partly why we are where we are now. Democrats have put us into a lose/lose scenario. No matter what we do, at least under democratic policies, people will be screwed and that means the poorest will be screwed even more than the rich. Then they will run their typical campaign slogan of Republicans only want to help the rich and democrats are for the poor. By the way, if inflation goes down to the zero that Biden claims, we're still paying these high prices.

 

[citygator]

Does is make sense to keep raising rates when the economy is great?

I dont get it.

I’m with you. It’s just advertising that the government is doing something. It’s a supply problem and will correct itself over time. Raising interest rates doesn’t build any new cars, TVs, microchips, or new houses which are all in short supply.

 

[Marener]

So Biden was wrong when he said last year that it was all transitional inflation?

Yes, he was 100% wrong.

 

[skews13]

Does is make sense to keep raising rates when the economy is great?

I dont get it.

Because people are flush with cash, and continuing to spend it, putting downward pressure on supply.

You’re not real bright on economics I see.

 

[LordBrownTrout]

Watching the fed flail like a freshly caught mackerel at the jetty is just painful to watch.

 

[The Original Tree]

They are raising rates to try and slow down inflation, which will lead to a recession if it isn't there already.

If there was a full blown "classic" recession, almost certainly rates would be going down, often aggressively. Inflation and energy costs among other issues (some might argue the energy issue is self inflicted but I digress) has created a perfect storm of trouble.

IMO, the massive, excessive deficit has assured many of these issues, especially as the economic benefits of this sharply increase debt is suspect.

The long term structural damage to the U.S economy and reserve currency status is yet to be determined.

This is insanity that wer are Spending and borrowing over $1 Trillion Dollars over our Tax Revenue.

 

[LordBrownTrout]

Because people are flush with cash, and continuing to spend it, putting downward pressure on supply.

You’re not real bright on economics I see.

Thats not even remotely close to true. The fed can only pump so much blood into the corpse before it explodes.

 

[22lcidw]

It's meant to slow things down. To keep inflation in check.

Listen up! In a real healthy economy, we would have civilians putting money into banks and getting interest on accounts higher than inflation. It has not been that way for decades. So, if inflation was 2% then we would get interest back at 4% on savings and checking. And no charges for keeping money in the bank. This has been going to keep inflation in check for those years. The currency is dying. For we are in decline.

 

[Papageorgio]

Because people are flush with cash, and continuing to spend it, putting downward pressure on supply.

You’re not real bright on economics I see.

It seems you are the dim one on economic issues.

How sky-high inflation is evaporating Americans' savings, imposing 'cruelest tax' on the poor

Historical efforts to combat inflation have been accompanied by further anguish.

abcnews.go.com

https://www.bnnbloomberg.ca/inflation-is-draining-consumers-savings-national-bank-ceo-says-1.1755697

Americans Are Draining Their Savings As Economic Outlook Grows Dimmer

U.S. savings accounts are getting a one-two punch as Americans are raiding their accounts, but not replenishing them. Nearly half (46%) of adults say they’re investing and saving less than usual, according to the latest Forbes Advisor-Ipsos Consumer Confidence Biweekly Tracker. That’s an eight-po

www.forbes.com

High inflation has 58% of people nervous about their savings, survey finds. One trick may help you boost your emergency cash

The percentage of people who are uncomfortable with the money they have set aside is now 58%, up from 44% two years ago, a new Bankrate.com survey finds.

www.cnbc.com

Food stamps, credit card debt: Record high inflation forces some older Americans to make tough financial choices

Older Americans who rely on Social Security for income have been forced to make some tough financial choices amid record high prices.

www.cnbc.com

We are most likely heading into a recession by most all experts definitions, only you seem to think we are all doing great.

U.S. recession looks likely — and there are 3 ways the economy could get hit, analyst says

The odds of the U.S. economy falling into recession by next year are greater than 50%, TD Securities said Monday, outlining three possible ways it could get hit.

www.cnbc.com

‘Uncomfortably high’: What economists say about the chance of recession.

The range of forecasts is wide, but economists generally see a rising probability that the U.S. economy will shrink.

www.nytimes.com

You continue to live in your little dream world, bright boi.

 

[Natural Citizen]

Thats not even remotely close to true. The fed can only pump so much blood into the corpse before it explodes.

Don't you just shake your head sometimes when you read this stuff? I know I do.

They'll never be able to raise interest rates anywhere near the level they would be in an actual free market, because if they did that the interest rates would be unsustainable, not only to businesses and consumers, but to the debt payments of the government itself.

The other thing is that, really, they've only raised the rates to around where they were before the so-called pandamic and before they went on that massive spree of creating currency out of thin air.

All they're really going to acomplish is to revive the stagflation of the '70s.

 

[Papageorgio]

Thats not even remotely close to true. The fed can only pump so much blood into the corpse before it explodes.

skews13 is either dishonest or incredibly stupid or both.

 

[Blues Man]

Does is make sense to keep raising rates when the economy is great?

I dont get it.

The real goal is to cause a recession

 

[Blues Man]

I have asked several grocery & restaurant managers and they say the suppliers have more than enough and we are being gouged.
The managers are not happy.

Yup we keep hearing that there is a glut of inventory and that usually means prices will drop but not this time

 

[Indeependent]

I am not shocked that you again made shit up and cannot support it.

Yeah, yeah, yeah.
I am not going to bother posting a Link bacause you’ll conjure up more bullshit.
He’s all over the news fucking up.

 

[Harpy Eagle]

Yeah, yeah, yeah.
I am not going to bother posting a Link bacause you’ll conjure up more bullshit.
He’s all over the news fucking up.

Who is "he"?

 

[OldFlame]

You are one stupid motherfucker. The Fed is raising rates to clamp down on inflation, not to ward off a recession. If you had a fucking brain cell or two you would know that the risk of raising the rate is the chance of recession.

This is why rightwingers have no business being in charge of government. They're all fucking morons.

So Biden lies when he says there is no inflation?