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/biz/ - Business & Finance

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51603022 No.51603022 [Reply] [Original]

Why is the fed still raising rates when inflation peaked 3 months ago?

>> No.51603064

>>51603022
its still abnormally high

>> No.51603097

>>51603064
That's not how inflation works. If it already peaked and there's a downward trend, that means there's basically 0 inflation right now on a monthly basis.

>> No.51603102
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51603102

Anon, If we try to average out the last few months and assume inflation is stuck around 7,5%~8.0% that is still abnormally high for U.S, Whose inflation was usually under 2.0% before the coof and the world stopped making sense.

>> No.51603121

>>51603097
core inflation hasn't peaked. it actually increased for this month.

>> No.51603130

Fed doesnt care about inflation they care about bond yields not going too high or the federal government defaults and the USA balkanizes ala USSR in 91

>> No.51603134

>>51603097
Biden, that you?

>> No.51603143

>>51603102

When did it ever make sense?

>> No.51603145

>>51603022
I spent 12 bucks for a meal at Popeyes. The beatings should continue until everyone learns their lesson

>> No.51603174

>>51603097
Politics. Politics is what led to the high inflation, Trump didn't want to raise interest rates during his term when the economy was hot, and money was pumped all over the place last two years for covid so the politicians would look like they were doing something. Now, the popular sentiment among the American public is that inflation needs to be brought down, the politicians want to be re-elected so they have to respond, to the Fed will over tighten, because the American public don't understand that there's often lag, and they won't tolerate inaction.

>> No.51603220

>>51603174
So I guess that means the pivot is happening at the December FOMC meeting?

>> No.51603265

>>51603097
you are absolutely unequivocally irrefutably dumb as rocks

>> No.51603295

>>51603022

For the same reason you keep chucking water onto a fire that's still raging at 90% of it's peak capacity

>> No.51603309

>>51603220
Yeah, all in now, mumu

>> No.51603324

>>51603174
I disagree, it's all very wag the dog, the narratives about rates and inflation are given as excuses to the public who then demand the solutions prescribed by experts, all while those "in the know" are buying and selling fluorescently marked bottoms and tops. the public is told what to think and say thereby giving their consent to be robbed

>> No.51603345

>>51603097
this. it's just prices higher year over year even though prices are coming down over several months. though i'd say if the fed signaled even less tightening, inflation would spike back up. have to keep up the narrative and pain.
everyone else calling you a retard is so fucking retarded

>> No.51603367

>>51603324
ok overnight billionaire, what are these obvious tops and bottoms. speak so that i may laugh at you.

>> No.51603397

>>51603367
I almost went with "invisible ink" instead, it should have been nonetheless parsable by the reader that the bottoms and tops are marked only for insiders' eyes

>> No.51605383

>>51603134
kek

>> No.51605434

>>51603022
They keep printing and dropping helicopter money to companies and banks. It's all so fucked.

>> No.51605478
File: 60 KB, 456x460, 930F8923-922C-418F-B834-BE5B04F00FD2.jpg [View same] [iqdb] [saucenao] [google]
51605478

>>51603022
Please look up what this fraudulent “consumer price inflation” index consists of. Since they changed the measurement in 1989, it no longer tracks the 3 largest components of inflation - that’s right, education ( including college costs), healthcare, and housing (rents, mortgages, utilities, property tax, etc.) are NOT included in CPI. Include them like we used to, and curremt CPI is more than 17%. Do your own research to corroborate all this.

>> No.51605906

>>51605478
Do you know any sources that do include them?

>> No.51605957

>>51605906
http://www.shadowstats.com/alternate_data/inflation-charts

>> No.51606011

>>51603097
Assuming you're asking a genuine question --

We want the inflation number to be around 2%
8% is still stupid high, even if it was 9% a couple months ago
Inflation is still occurring at too high a rate.

Imagine you're in a speeding car.
You want to be travelling at 35 MPH, but you kept your foot on the gas and hit 80 a few seconds ago.
You started to brake, and now you've got your speed down to 70.

Do you stop braking at 70 because 70 is slower than 80?
You want to be going 35, so you have to continue braking.

>> No.51606018

>>51603022
This is not the correct chart lol, inflation went back up again on august.