http://twitter.com/mehdirhasan/status/1695093910849110355?s=20
The Fed has backed and cheerled all of the bad spending.
The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control. In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck.
The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control. In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck. Spending and stimulus checks had far more to do with inflation than low rates.
The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control. In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck. Seems like best practice would then be to revert to a gold-backed currency and cut the Fed out all together.
The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control. In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck. Seems like best practice would then be to revert to a gold-backed currency and cut the Fed out all together. Some old school idiocy.
Since creating the FED in 1913 our debt has stabilized beyond anyone's imagination.
