Posted on 02/27/2023 4:29:58 PM PST by RomanSoldier19
Americans' spending spree is keeping inflation elevated and sticky, meaning the Federal Reserve must crush consumer demand with more interest rate hikes that will likely induce a recession, according to Bank of America.
In a Monday note, analysts explained that the Fed is unlikely to reach its 2% inflation target unless it leans into much more interest rate hikes. The odds of a downturn are high in that scenario, they maintained, because the non-consumer sectors of the economy already look weak.
"The strength in the January activity and inflation data suggests that the Fed might have to hike considerably further to find the point of pain for the consumer," BofA analysts wrote. "Right-tail risks to the terminal rate are growing.
(Excerpt) Read more at markets.businessinsider.com ...
must “crush consumer demand with higher interest rates” - aka - completely crash the economy. Yeah.. sounds great. How about kicking the cause out of office...
Don’t crush gubmint spending, whatever you do.
KICK HIS ARSE TO THE CURB CLOSEST TO THE SOUTHERN BORDER!!
Crush your enemies, see them driven before you, and to hear the lamentation of their women!
Send 20 trillion dollars to Ukraine and Hunter Biden.
“Don’t crush gubmint spending, whatever you do.”
That is exactly right. Blame the inflation on consumer demand and not government spending. Bwahahahahahaha
Banks and other lenders want high interest rates so naturally they want the fed to “crush” the American people.
“Consumer demand” has nothing to do with causing inflation. It does raise prices but that is a result of there being more money created and flooding the system. The increase in the money supply is entirely what inflation is.
Paging Paul Volker, Paul Volker?
There is at school-—But NON parents are footing the bill in property taxes.
The previous 3/4, 3/4, 3/4, 1/2 increases have had negligible impact.
Last month inflation was back to 0.04%. The rates for the previous 4 months have been revised upward.
Democrats don’t WANT inflation under control.
It devalues the existing debt, they collect more dollars from the higher wages that people demand because of inflation, more hit higher income tax brackets, etc. etc. etc.
Yeah you morons! Quit enjoying life and stuff.
Intentional government policy has / is substantially driving the cost of energy up. Supply has no role in controlling its cost as a result. Therefore, as intentionally reduced supply driven inflation is ripping through food, energy, and every other sector of the economy, the only thing that can control it is to reduce demand to meet the artificially low supply. Sharply reducing energy usage by 30-50% will crush everyone and everything.
Slightly less negative real interest rates (like we have now and the markets are forecasting) cannot do this. If government policy does not change, inflation will not go back to 2% without very positive real interest rates that are high enough to crush everything and everyone.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.