Inflation, Fed rates and Recession
I don't Want repeat what is said again and again but just want to know why Fed is using rates to control inflation if rates are not the root cause of issue. Post covid demand, supply issues, war are the root causes for spike in prices. Wrong medicine for a real problem. Post pandemic, customers ability to spend more has increased, so no matteryou increase the rates they will still throw the money to get what they want, exception a little change. not sure how they derive and rely on CPI prices as a measure of inflation but I feel is nt more reliable to use CPI vs Salary increases as a measure? People are earning more, people have accumulated more during lock downs so they have funds to splash but supply is clogged with various reasons. Definitely NOT rates that caused this mess. If it is rates, then it should have happened in 2021 itself.
Pressing a wrong button and inducing recession, fed is creating an artificial crisis.
If you can't solve a problem, don't create anotherproblem. $SPDR S&P 500 ETF Trust(SPY)$
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我想没有更好的选择了。加息被认为是通过借贷减少支出，并鼓励高息储蓄。但风险在于，它可能会扰乱企业，导致衰退或滞胀。这只是很一般的理论。在现实世界中，如果人们能负担得起，他们就会消费。只是会有一个转折点，价格上涨必须放缓。我只是一个新手，但我认为专家也不能绝对肯定。