Posted on 07/28/2022 7:13:10 AM PDT by Mariner
The Federal Reserve on Wednesday enacted its second consecutive 0.75 percentage point interest rate increase as it seeks to tamp down runaway inflation without creating a recession.
In taking the benchmark overnight borrowing rate up to a range of 2.25%-2.5%, the moves in June and July represent the most stringent consecutive action since the Fed began using the overnight funds rate as the principal tool of monetary policy in the early 1990s.
(Excerpt) Read more at cnbc.com ...
Yup I’m disappointed in the lack of action on gold’s part too.
I’m moderately bullish on gold right now and hold gold stocks and bullion.
Indeed we treat currencies as a value RELATIVE to other currencies, when in reality they all have fallen being fiat.
“Hiking rates into a recession:
How to completely crash an exonomy 101.”
Which is precisely what Paul Volker did in the 80s.
And we came out of it with the “Reagan Years”.
It must be done. The bubble must be popped.
What was the average wage in 1932 compared to the average wage in 2018?
We either get the hyperinflation or the recession. I think we may get both.
Thanks Congress and Presidents for all the useless war spending and welfare state spending and cv19 spending.
Fail gonna fail
Some people get the vapors when I inform them that for most of the 1980s, the federal prime rate was at 10% or greater (and was as high as 21.50% in December 1980).
I remember those times too well. It was during the Carter years, when the prices of gasoline rose very quickly. I was having a hell of a time paying for gas to fill my 1965 Oldsmobile 98, a real gas guzzler.
The plot in this site summarizes it well:
https://www.gobankingrates.com/banking/interest-rates/see-interest-rates-last-100-years/
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