RE:RE:RE:A few days ago I suggested a sell and GunnerG wrote: The economy is booming, unemployment is low and inflation is soaring.
WTH do you expect the fed to do, they only have one weapon to fight this type of inflation.
I don't think that inflation was caused by increased demand but rather due to lower supply (which would drive price increases). If that's right, reducing demand would incurr a recession, which is what the markets are worried about.
The best way to reduce inflation would be to increase supply back, but the Fed can't do that with rates, it can only reduce demand.