/biz/ - Business & Finance

>>53367550
Thats not the primary reason because the rising goods are primarily due to other issues. Namely the rising prices are due to covid shutdowns fucking supply chains and the sanctions on Russia fucking basic goods. Russia is not only a major gas suppliet buy one of the largest fertilizer and grain exporters. Raising rates cannot fix this because food and energy are basic goods people need amd there is only so much you can resuce. The fed knows this.

The purpose of raising rates is to reload the chamber so to speak so that they can cut rates to goose the economy but they need to have enough to cut to have an impact and cutting from 2 to 0 wont cur it just see how much they cut in the last few recessions; pic related.