Were Caught in a Trap.Suspicous minds, believe the Fed is in a box. Can't really raise rates meaningfully long term with out crashing the, Financial, stock, and housing markets.
Do the Math
How much can the Americans raise rates. They owe 30 trillion, they bring in only 4 trillion a year, and pay 450 million a year in interest per year already with rates near zero. Now raise rates a few points, how much will interest payments be per year? Where will this new revenue come from, raise taxes 1000%
Debt to GDP is 130% with an annual budget deficiet of a trillion.
Option 1. raise rates to 10% to meaningfully get a hold of inflation. U.S government defaults on it's debts, great depression style deflation.
Option 2 raise rates a few times, pretend like we care about how inflation is gutting your standard of living. rate hikes cause recession (if were not in one already) U.S impliments yeild curve control, obscene "stimulus" spending, NIRP
I'm going with Option 2 before the Great Reset.
Ooops sounds too much like politics muh stoks go up! CPG to the moon! Honk Honk, clown world, cheers Matthew