No. 1 we are already in a recession. No. 2 We still need to raise rates to fight inflation.
The southeast US is economically booming and NY and CA are near par.
No.2 we still need to raise rates to fight inflation caused by the economy growing and not shrinking.
Ordinarily raising rates can mitigate inflation. But these are extraordinary times. We are printing 1 trillion unbacked dollars every 3 months. How can the value of our currency not be diminished, whatever the Fed does regarding rates, by this reckless practice? The steadily rising price of gold is a good indicator of the dollar’s decreasing value.
True unemployment and inflation is more than 4x reported. 16% is inflation, and unemployment is 13%. The debt is growing by 3 Trillion a year, not counting 1 Trillion in service fees on that debt.
Unless we cut spending - a lot - it will take more than raising interest rates. Do we raise the rates to 20%?
I think we are beyond the Pale. The Fed can't raise the interest rates more than a tiny amount - because our debt becomes even more unmanageable. I know the published inflation rates are cooked (ignoring energy, food, and anything that matters) and they don't project the real numbers...
I don't know the fix. Yes, the interest rates 'should' be raised, but they can't raise it too much. And, of course, since the Fed wants Biden to be re-elected they'll probably cut the rates - and publish new phony inflation numbers to give them a fig leaf cover. Even if President Trump wins the Presidential election (he'd win an honest election - but that ship has long sailed), I don't know how he fixes it. We've gotten away with the Dollar being the World's currency, but if that changes (with BRICs, or some other exchange medium) - its Weimar Republic time.