Economy

ProudMNDemocrat

(19,264 posts)

1. Raising borrowing rates does not curb inflation. It makes it worse.

Reply to mahatmakanejeeves (Original post)

Mon Oct 31, 2022, 07:27 AM

Oct 2022

Even when there is inflation, people are still buying things like consumer goods, homes, and using Credit Cards to do it. The Fed raising borrowing rates means that consumers have to make the difference so Banks can make more money.

Drop the rates back by half what it is currently. Consumers will feel it immediately. Banks will still make money.That will surely affect Supply as demand increases. Perhaps manufacturing more in the US will ease the supply issue. Like with the Micro Chips needed for so many consumer goods like Cars, computers and Electronics, home appliances, etc.

Just a thought.

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The Fed's Problem With the Job Market [View all] mahatmakanejeeves Oct 2022 OP

Raising borrowing rates does not curb inflation. It makes it worse. ProudMNDemocrat Oct 2022 #1

Nope Bernardo de La Paz Oct 2022 #3

The Fed raising interest rates increases the cost of money to banks, so they raise their rates Bernardo de La Paz Oct 2022 #4

From what I'm seeing... jmbar2 Oct 2022 #2

lets remember what republicans want anti stupid Oct 2022 #5

I have noticed in the last month that the shortage of workers has doc03 Oct 2022 #6

Rising prices are about testing what the market will bear and maintaining corporate profits. /nt bucolic_frolic Oct 2022 #7

Are they really that pig ignorant? Warpy Oct 2022 #8

Quadruple redundancy ... Xoan Oct 2022 #9