The reason for raising the rates is to keep those inflation numbers very low.”””
When Jimmah Carter was in office, the PRIME RATE was OVER 21%. I don’t remember inflation being low. I only remember a stagnant economy—people being UNABLE to buy houses & having to buy gas every other day because of his policies.
I also remember the downfall of the Shah if Iran and the failed ‘attempt’ to rescue the Americans held hostage by Iran. Those hostages spent 444 days (IIRC) in Iran, until Reagan got them released within days of his Presidency.
The bombing of military facilities also happened under Carter.
YUP-—the ridiculous prime rate sure was wonderful.........
Nixon and Carter had two of the most incompetent Fed Chairs in history in Burns and Miller. Inflation took off under Nixon and continued under Ford and Carter because the FOMC sent mixed messages to the business community and nobody was sure what the Fed was trying to do. Paul Volker was a much stronger Fed chair and the proof is in the fact that inflation averaged 7.4% per year the ten years before Volker became Fed Chair and has averaged 2.9% per year the ten years after Volker's term ended.
The way to keep inflation low is to keep the economy growing, not manipulating interest rates.
But instead, the Fed raises rates too high and inverts the yield curve, causing recessions just like clockwork.
The inflation we’re seeing now is because of the massive fortune that was used by the Fed to prop up the Obama economy, not current economic growth.
The Fed is also causing the deficit to explode because of the higher interest we have to pay on that massive fortune.