OG: Do you think powell can bring inflation down with his 3.25% fed fund rates?
#1

For 8>% inflation? It has been proven in history that inflation once unleashed is very have to retract back. And interest rates needs to be higher than inflation rate in order to curb it. Can powell hike until 9.5% fed fund rates?

If 9.5% interest rates many countries including sinkapore and sinkies condo buyers will be queuing at bedok liao.
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#2

5-10% condo owners will eat ice cream


Smile
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#3

(14-10-2022, 12:16 PM)Niubee Wrote:  5-10% condo owners will eat ice cream



it is very possible because inflation is going to be sticky.
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#4

It is only a 1 way ticket.
Once rate is raised, it will raise nonstop until it cant take it any more and go bust.

“Be who you are and say what you feel, because those who mind don't matter and those who matter don't mind"
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#5

(14-10-2022, 11:59 AM)sogo Wrote:  For 8>% inflation? It has been proven in history that inflation once unleashed is very have to retract back. And interest rates needs to be higher than inflation rate in order to curb it. Can powell hike until 9.5% fed fund rates?

If 9.5% interest rates many countries including sinkapore and sinkies condo buyers will be queuing at bedok liao.

thing dont work this manner,, inflation 8% got to increase rate to 8% to get to zero.

as rate increase the economy could slow faster than expected so inflation will decrease even faster without further rate increase.
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#6

Raising rates are not to fight inflation but to keep the Federal reserve alive POSITIVE
there is no solution Consumer inflation has escaped. West has followed Japan into the Deflationary Blackhole thinking Japan can do it without inflation so can we.
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#7

Indien replies
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#8

(14-10-2022, 01:15 PM)victortan Wrote:  thing dont work this manner,, inflation 8% got to increase rate to 8% to get to zero.

as rate increase the economy could slow faster than expected so inflation will decrease even faster without further rate increase.


Actually it did not happened in history. Even Volcker had to hike it to 20% to finally kill the inflation. What makes u think Powell can hike 4% to bring down inflation?
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