Fed raises interest rates by 75-basis points in historic move to fight inflation

Foxbusiness.Com ^ | June 15, 2022 | Megan Henney

[Opinionated Blowhard]

Its a “historic” move because our economy hasn’t been this bad in recent history.

[Eric Blair 2084]

Well, the New York Times endorsed Jimmy Carter in 1980 Against Ronald Reagan. They finally won. This is Jimmy Carters second term. And he is alive to see it. Weakness on foreign policy and high inflation

[Texas resident]

Whip
Inflation
Now

Here we go again
Same old thing again.

Hey kiddos those that are too young to remember the late 70’s, hang on to your hats. It is going to be rough ride.

[saturn]

What’s the difference ?

[neverevergiveup]

The difference is that when you have inflation in the context of a robust economy (growing amount of products and services) raising rates cools the economy a bit (thus hopefully decreasing inflation). However, when you have inflation in the context of an already struggling economy (ie low growth or no growth of products and services) raising rates just cools the economy further - making the dollar worth intrinsically less at the same time that prices are going up.

[saturn]

Thankyou for the explanation, greatly appreciated it,

[2harddrive]

NOT NEARLY ENOUGH! Try 600 basis points, for a START.