There are some rumors that they already got together this weekend to make their decisions and that Monday will just be used for Theater.
If they want to kill inflation they’ll need to go big like Volcker did in the early 80s. It’ll be 2 years of hell for the economy, but it’s the only thing that will kill inflation. In the end the rest of the 80s rebounded quickly after adapting to the new reality.
It didn’t hurt that we also had the Reagan tax breaks and reduction in regulations.
I just don't see it. Yes, inflation is "always and everywhere a monetary phenomemon" but US is far more socialistic now than before, China and USA are disengaging, we are still facing supply chain issues, and we have far more malinvestment in non-productive things.
They may control inflation, but not eliminate it - the result will be stagflation
We did not have trillions in debt in the 80s...
Unless they decide to go full oligarchy and provide "special" financing to government while forcing the rest of us to pay high interest to finance it. Then we'll have a fraudulently-elected government raising taxes via interest rate subsidies without representation.
This isn’t the 80’s, they raise rates like Volker then you say goodbye to the government and look for a collapse. Between health care spending, interest on the debt, social security it will not work.
Now if they cut Medicare and Medicaid, we can make it, and i mean to Zero. Prices will totally collapse in health care, lots of unemployment, and hospitals closing, but you will be able to pay for a-lot of stuff with cash, insurance will be gone or only catastrophic.
Interest rates will have to go up a minimum of 1000 basis points, the government would have to balance the budget and austerity will be in.
According to ForexFactory calendar Member Bullard of the FOMC will speak at 11:00 am EST Monday morning.
Absolutely correct almost no one understands this
Many are confusing supply chain scarcity price hikes with monetary inflation price hikes.