The Fed is about to raise interest rates and shaft American workers – again

But just a few years later, it all came crashing down with the price of oil. The jets were grounded, cranes dismantled and commercial projects scrapped. Thousands of workers lost jobs and scores of companies went belly up.
 
People complain about inequality yet the biggest driver of inequality in this country is the Fed. Low interest rate policies and then QE have led to (huge) asset bubbles. They know the wealthy are the biggest beneficiaries of these policies but they argue the wealth effect is a benefit to the economy.

For people who argue rates shouldn’t be raised I have no idea how they think interest rates can essentially be zero for ever and the Fed can continue to hold the assets they do on their balance sheet. It’s a total distortion of the economy.
 
Celticguy said:
yes they must be raised and that should have started last year but no chance Biden would pressure Powell to do so and Wall Street certainly didnt want it.

Carter's problem was that he failed to act in a timely or effective manner.
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The Fed is (in theory) independent of the White House. The President shouldn’t be pressuring the Fed about what to do with rates.
 
BidenPresident said:
Policymakers fear a labor shortage is pushing up wages and prices. Wrong. Real wages are down and workers are struggling

Higher interest rates will harm millions of workers who will be involuntarily drafted into the inflation fight by losing jobs or long-overdue pay raises. There’s no “labor shortage” pushing up wages. There’s a shortage of good jobs paying adequate wages to support working families. Raising interest rates will worsen this shortage.

https://www.theguardian.com/comment...est-rates-shaft-american-workers-robert-reich
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In my opinion, now is the best time to move forward with upgrading our physical (and legal) layers of infrastructure to modernize our economy and render it more effective and cost efficient as a result.

Hypothetically, equal protection of our own at-will employment laws for unemployment compensation in our at-will employment States could help our legislators command our economy in a more market friendly manner, for economic purposes under our form of Capitalism: All laws of a general nature shall have uniform operation.

Solving simple poverty by solving for Capitalism's natural rate of unemployment is what benefits our economy and helps automatically stabilize it while enabling more market friendly solutions due to that increase in market participation potential in any given market sector.

One simple example could be reducing traffic in a manner that helps make a difference when upgrading our road infrastructure.
 
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cawacko said:
The Fed is (in theory) independent of the White House. The President shouldn’t be pressuring the Fed about what to do with rates.
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It should be decided by need and not political machinations



Biden isn’t commanding it
 
https://en.m.wikipedia.org/wiki/Federal_Reserve




The Federal Reserve System has a "unique structure that is both public and private"[52] and is described as "independent within the government" rather than "independent of government".[53] The System does not require public funding, and derives its authority and purpose from the Federal Reserve Act, which was passed by Congress in 1913 and is subject to Congressional modification or repeal.[54] The four main components of the Federal Reserve System are (1) the board of governors, (2) the Federal Open Market Committee, (3) the twelve regional Federal Reserve Banks, and (4) the member banks throughout the country.
 
evince said:
https://en.m.wikipedia.org/wiki/Federal_Reserve




The Federal Reserve System has a "unique structure that is both public and private"[52] and is described as "independent within the government" rather than "independent of government".[53] The System does not require public funding, and derives its authority and purpose from the Federal Reserve Act, which was passed by Congress in 1913 and is subject to Congressional modification or repeal.[54] The four main components of the Federal Reserve System are (1) the board of governors, (2) the Federal Open Market Committee, (3) the twelve regional Federal Reserve Banks, and (4) the member banks throughout the country.
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The fed and the fiat dollar is an exercize in fascistic nightmare sculpting.
 
In general, when interest rates are low, the economy grows, and inflation increases. Conversely, when interest rates are high, the economy slows and inflation decreases. Inverse Correlation Between Interest Rates and Inflation Under a system of fractional reserve banking, interest rates and inflation tend to be inversely correlated.

people shouldn't complain about high inflation and the subsequent rate hikes, a question of balance, no free lunch
 
Trust the experts for one fucking second



Quit trying to tear down and insult every entity this nation created
 
so,


The keynesians all say it's fine to have your national currency as the fiat reserve currency of the world, as long as you always use the power against americans.

rich people are fine with that.
 
reagansghost said:
In general, when interest rates are low, the economy grows, and inflation increases. Conversely, when interest rates are high, the economy slows and inflation decreases. Inverse Correlation Between Interest Rates and Inflation Under a system of fractional reserve banking, interest rates and inflation tend to be inversely correlated.

people shouldn't complain about high inflation and the subsequent rate hikes, a question of balance, no free lunch
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Bingo


It’s a tool to keep things moving or keep them from overheating
 
Originally Posted by cawacko

The Fed is (in theory) independent of the White House. The President shouldn’t be pressuring the Fed about what to do with rates.
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presidents routinely lobby the Fed, they can and do ignore it
 
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