That's bc Biden's handlers stopped hiding the magic gas price meter from him and set it up next to the White House ice cream machine. He might actually tug on it between now and November.
Inflation report
- Thread starter Boom Boom
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Credibility and Expectations matter.
We went from ball parking 2.5 to 3% for multiyear contracts to plugging in 5% a year. That 5% showed a lot of faith in the fed in general after they just 17ed up pretty badly. If they let inflation run up above 5% (or even to 5%), and we're going to have to reassess whether 5% is enough because it doesn't leave us room for the Fed to 17 up again.
Of course other people are seeing our prices and bumping their inflation expectations up, just like we do when we see other people build in higher increases. If people expect inflation, they are going to price inflation in, which is going to drive inflation.
Given that the Feds dual mandate is to maximize employment too, it's clear they didn't F up.
A combination of the "fighting the last war" mentality, and these are all bankers, so they range from centrist to hard core Republican. They have a lot of people screaming in their ear about inflation, so they hedge their bets rather than act based on the data.
Who should manipulate our money?
Or are are suggesting there be no group that can pull monetary levers?
If you aree suggesting there be no influence, then who would even set the rate for borrowing from the gvt?
If the rate of borrowing never changes, then nobody would borrow during low bank interest times and everyone would borrow during high bank interest times.
The way Article 1, Section 8 of the U.S. Constitution lays it out. Maybe if it went back to Congress, people would start caring about who they elect. If they don’t, then at least some random bureaucrat doesn’t do it.
Giving it to an elected official would insure it would be changed for political reasons. At least now neither party can affect the rates for political reasons.
My goodness the amount of people wishing for a govt controlled by a dictator is astounding to me.
We may not have much left in the strategic reserve at that point, but let's be honest, we don't really need it, right? I mean, what can go wrong?
This post is why you should never be taken seriously....about anything.
I guess an economic panic and bank run every 10 years or so would keep us on our toes. Might even get another depression for the nostalgic types longing for a long ago era....
What is the price for Milk,Bread,Eggs,Beef,Gas compared to 4 years ago? How much have wages went up in 4 years?
This is my take. It seems the Fed is looking at real data and not sinking poll numbers. I’d send you all my opinions on what the Dems plan is to combat a number of headwinds against them this summer, but someone just deleted every email on my server.
I don't want anything about June 2020 to be my benchmark for economic satisfaction. I'd rather just forget 2020 ever happened.
https://en.wikipedia.org/wiki/Federal_Reserve_Board_of_Governors
How far to the left do you have to be to consider Kugler, Barr, and Cook “centrist”?
Sorry but it’s hard to associate Biden with anything good when it comes to the economy. This interest rate stuff is ridiculous. If they’d lower them a ton of people would buy.
The housing market will correct itself as the boomers buy out (sorry boomers, just truth).
The housing market will correct itself as the boomers buy out (sorry boomers, just truth).
The Fed chairman is a presidental appointee. That means he is inherently political.
I am convinced he is a parody account. Kinda like an Ole Miss fan pretending to be a State fan here.
As are all of the Board of Governors. Every last one is approved by the Senate as well.
Yes. These people shouldn’t be setting interest rates and informing regulatory policy to the treasury department. We didn’t elect them to do that.
I can’t think of many ideas I would oppose more than having solely Congress regulate monetary policy.
My viewpoint on this changes based upon who is in control of congress.
I believe you both. I don't think the president has been in charge of Congress for a long time. I really think the people who are completely in control of Congress are not elected. I really don't look forward to the election anyway because you have one person that won't shut up and one person that can't talk
No, he said the Feb is going to be abolished and I can’t wait either. What kind of sнitty аss month only has 28 days 3 out of 4 years and is so broke it has to borrow an extra goddam day every 4th year?
Leap day? You ain’t leaping sнit, bitсh!
I’m with Anon626272527272772 or whatever…. 17 Feb and its bullsнit Hallmark holidays!
I agree, but your 5% escalation clause is nearly 2X the current CPI level if you max it out. That’s basically a free lunch for you at this point.
But the FED has two jobs: A) Manage Inflation & B) Full Employment. It doesn’t do any good to get ‘under 2%’ if it costs them employment.
Without googling it, I’m guessing we’ve seen a declining inflation levels something like 20 of the last 24 months. The discussion about rate cuts is better measured as ‘slower declines’ rather than inflation actually increasing.
Fair. I’d come back with a clever retort, but my ghost writer was just convicted of a felony.
The fed hasn't been drastic enough on rates. Inflation has declined because it had nowhere else to go, but the telling metric is that it's not declining at the rate that was expected. Meanwhile with all this talk of inflation "decline" the reality is that prices are still going up. You don't get to 300 lbs overnight, so you're not going to lose 100 lbs overnight but you can influence the pace through how drastic your diet is. The fed hasn't been drastic enough, probably because they're trying to protect Biden. But there are consequences to printing money and it affects all of us. Halfassing the mitigation helps nobody. If Biden won't address it with common sense policy changes, then the fed has to rip the bandaid off for him.
And by the way, we are nowhere close to full employment either. Deceptive jobs numbers that are constantly being revised down in the cloak of darkness should be a scandal. Most of the jobs added are part time and govt jobs.
The fed needs to get drastic. Like The Stones said, you can't always get what you want, but if you try you might find that you get what you need.
There's a lot on the table with this next election. From credit cards to estate taxes but anyone thinking rates are going to be cut significantly is probably in for disappointment.
Full employment is never the goal really
If it's a choice between waiting for some politician to better my life or me taking personal responsibility to better my life then I'm not taking the government option.
You have the most control of what you spend, what you save, what debt you have, what you make how educated you want to be and where you work in the long term. I'd prefer to keep politicians out of it.
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