RE:StagflationIndianSparrow wrote: Commodity inflation this time around is due to supply issues. Everyone knows that, including Jay Powell. Jay also knows that he cannot do squat about supply issues. So what does he do??. He starts jacking up interest rates to cause more pain to the average Joe because in his mind, he wants to destroy demand. But commodities are basic needs and average Joe needs to buy them prior to going out and having a good time spending on things like expensive toys and clothes. How does increasing interest rates control commodity inflation in today's scenario where the supply crunch is the only issue causing it. Jay Powell is either incompetent or pure evil.
one of the issues may well be that low interest rates for years resulted in standards of living being too high. My 25 year old owns a house, has two decent cars in the driveway and takes Caribbean vacations. I knew no one like that when I was in my 20s. Well, at least no one that did that on the back of their own employment income. Why can they live like that? Artificially low interest rates