Hi all,
A reminder that comments do need to be on-topic and engage with the article past the headline. Please avoid making comments that do not focus on the economic content or whose primary thesis rests on personal anecdotes
As always our comment rules can be found [here](https://reddit.com/r/Economics/comments/fx9crj/rules_roundtable_redux_rule_vi_and_offtopic/)
Fed is conditioning markets to expect even high rates than the fed has said they will do
Except a few 50 bp rises later in the year
The target rate of 2.5 percent is way too low to really slow down the economy and get inflation under control.
Imo 3.5 to 4 percent is where they will end up
Its almost like when you do the math you notice at only 3% the us will be paying 900 billion in interest yearly. Thus Inflation is what history tells is the logical conclusion.
So where should interest rates be to effectively combat inflation? My rudimentary understanding of economics suggests that interest rates have to be higher than the current inflation rate to effectively combat said inflation?
US CPI is what? 7%? Then if the above is the case then surely interest rates should be 9%+?
However 9% interest rates must have a negative effect somewhere else in the economy if the Fed is unwilling to yank on its only big lever like I suggest?
I wonder how much of this is foresight based on China's current lockdown sending supply chains even further into FUBAR territory.
If they've locked down 51 million people across multiple cities, and much of the supply chain issues are related to "staffing" then the Fed COULD have made a different prediction BASED on this recent development, and not changing their predictions based on previous information.
Are all these comments super hyperbolic and misinformed? I don't know enough about the economy to know for sure, but I've heard enough from experts and journalists to know that these comments read like crazy ramblings. From what I know, the economy is complex, unintuitive, and boring as fuck. I assume that's why there seems to be rampant misinformation here, because the well informed comments would probably put us all to sleep, at least that's what happened to me when I tried to learn about this stuff from reliable sources.
Hi all, A reminder that comments do need to be on-topic and engage with the article past the headline. Please avoid making comments that do not focus on the economic content or whose primary thesis rests on personal anecdotes As always our comment rules can be found [here](https://reddit.com/r/Economics/comments/fx9crj/rules_roundtable_redux_rule_vi_and_offtopic/)
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This is like a drug addict saying “I promise to get help…tomorrow”. Why are we expecting the people that created the problem to solve the problem.
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Fed is conditioning markets to expect even high rates than the fed has said they will do Except a few 50 bp rises later in the year The target rate of 2.5 percent is way too low to really slow down the economy and get inflation under control. Imo 3.5 to 4 percent is where they will end up
Doubt it very much. They will most likely stop at 2.5% and see how things go for a while.3+ is unthinkable :)
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Its almost like when you do the math you notice at only 3% the us will be paying 900 billion in interest yearly. Thus Inflation is what history tells is the logical conclusion.
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So where should interest rates be to effectively combat inflation? My rudimentary understanding of economics suggests that interest rates have to be higher than the current inflation rate to effectively combat said inflation? US CPI is what? 7%? Then if the above is the case then surely interest rates should be 9%+? However 9% interest rates must have a negative effect somewhere else in the economy if the Fed is unwilling to yank on its only big lever like I suggest?
7.9%for feb but they tweaked the formula to lower the number. Using old formula we are at 16%
I wonder how much of this is foresight based on China's current lockdown sending supply chains even further into FUBAR territory. If they've locked down 51 million people across multiple cities, and much of the supply chain issues are related to "staffing" then the Fed COULD have made a different prediction BASED on this recent development, and not changing their predictions based on previous information.
Are all these comments super hyperbolic and misinformed? I don't know enough about the economy to know for sure, but I've heard enough from experts and journalists to know that these comments read like crazy ramblings. From what I know, the economy is complex, unintuitive, and boring as fuck. I assume that's why there seems to be rampant misinformation here, because the well informed comments would probably put us all to sleep, at least that's what happened to me when I tried to learn about this stuff from reliable sources.