Fed is determined to destroy more wealth. Trillions not enough. Read above thread.
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The Fed exists for the most part to keep inflation at the target range of 2%. I think we’re all mature enough to understand that inflation is bad for the economy and that we can’t have a strong equity market in an unhealthy economy. I wish my stocks were going up, but that can’t always happen.
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We are way beyond that type of thinking now. Fed is now contradicting their own prior statements and original press release.
They have lost control. They are intent on crashing the system.
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This. Powell is either very partisan or drunk on his own power … or both.
We will need positive real interest rates to get ahead of the inflation battle. If inflation settles in at say 4% the fed rate will need to be held at 5% for a while.
tecmo
…
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This is an intentional act to crash the markets. Days prior to Midterms? Logical thinking. No solving inflation without fixing the UNIT OF ACCOUNT and energy.
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5% is probably the historical average. It may have to go higher to compensate the lower rate in the past decade.
The market is not the economy. Let me guess. You are too young to remember rampant inflation? There are worse things than stocks going down.
IP,
who has survived both those things and way prefers a down market to high sustained inflation, having prepared for both
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I have been running $ for 40 years. Stop.
No fixing inflation without fixing hydrocarbons and unit of account.
Crashing markets prior to midterms. Logical thinking