/biz/ - Business & Finance

>>53534895
What happened? Did he stop raising rates?

>>53535510
He did in real terms.
25 bepi hike into 125 bepis worth of inflation.
Shameful press conference on top of it.

>>53535613
what was he supposed to do, cause an international debt crisis?

>>53534895
Next time on Dragonball Z

>>53535613
He still raised rates though
You idiots can act like inflation requires a certain basis point raise in rates but there’s no factual evidence to back it up
I fucking told you retards this would happen
Raising rates doesn’t mean shit when everyone who sells when rates rise has already sold out
>dur high rates mean assets go lower
Not the case and high rates create more money out of nothing
It’s literally the opposite of what idiots like you say
Now look up the federal reserve studies on the neo-fischerian school of economics so you do t look so dumb

>>53535624
The government can lay off 90% of its parasitic workforce and start paying its bills. Powell’s job is to beat inflation. He is failing. Might as well hand him a pink slip while we’re at it

>>53535613
>125 bepis worth of inflation
what are you basing that on?

>>53535657
based and economic pilled
>>53535658
seethe harder

>>53535658
JP is not a "government employee". As Dennis Kucinich once said, the federal reserve is no more federal than federal express

>>53535657
>You idiots can act like inflation requires a certain basis point raise in rates but there’s no factual evidence to back it up
Look át picrel
>>53535658
Enjoy your rally. Just remember when you go to take profit from your gains all you’re going to get is wad of worthless fucking monopoly bucks with some fat nigresses portrait on it
Might make a decent substitute for toilet paper I guess

>>53535613
It was always going to play out this way
When jpow meet with Biden and he agreed not to replace jpow with lael brainard, jpow told him he’d ease off the hawk plan before his re-election in 2024
If you expected different, you’re the dumb one

>>53535755
>all you’re going to get is wad of worthless fucking monopoly bucks
It’s been this way for over 100 years you literal mongoloid
Seriously are you new here or born yesterday? Fucking zoomers need to leave

>>53535755
Accent over his a
Fuck off back to Europe or South America

>>53535802
>>53535775
You retards deserve what’s coming

>>53535624
>international debt crisis

yes, can we please just destroy the economy and get it over with.

>>53535834
moralistic faggot

>>53535834
Back up your arguments with actual facts not pictures of memes you foreigner
Stay out of American politics and economics

>>53535866
he cant use facts, hes probably a third worlder based on his grammar

>>53535854
>>53535866
CPI reading soon
>*checks calendar*
Look like you have 2 weeks

>>53535931
Price inflation goes up when rates rise
The charts don’t lie
You can keep repeating banker memes but it won’t make it true
I can’t imagine being so dumb that I believe higher banker profits would lower inflation
>buttttt higher rates means less loans
Not when the reserve requirement for banks is literally set to 0% and they loan money to their own investment banks to buy the dip
You got played dumbass but that’s what you get for trusting bankers

>>53535658
>>53535755
>>53535834
>>53535931
this dude is having a legit meltdown because rates only went up 25 points
kek

>>53536059
>Price inflation goes up when rates rise
most retarded gorillanigger on this board
didn't even read the rest, there's no point

>>53536310
Nice try banker cuck
You can’t explain away the facts

>>53535657
>>53536059
cool it with the antisemitism guys
bankers would never lie

>>53536419
holy shit hes right, higher rates are positively correlated with consumer price inflation
why don’t they talk about this more?

>>53536489
>why don’t they talk about this more?
why would bankers explain to the goy that higher profits for them leads to even more money creation?
i wonder why

>>53536419
Couldnt this graph be read in reverse too, though? As in, rates are only raised high when there is significant price increases to quell?

>>53536540
thats what economists argue but when you look at the facts
low rates in the 08-16 era led to lower inflation, high rates of the 70's led to higher inflation, easing rates in the 80's led to less inflation. if traditional economists were right it wouldn't show up the opposite in charts
it seems more likely to me that the bankers are lying to increase their profits in the name of lowering costs for consumers
it's obvious when you look at the charts the st louis fed has put out

>>53535657
>You idiots can act like inflation requires a certain basis point raise in rates but there’s no factual evidence to back it up
Every time inflation has been above 5% it required rates to exceed core cpi before it could be brought back below

>>53536731
>Every time inflation has been above 5% it required rates to exceed core cpi before it could be brought back below
show your proof
>>53536730
continued

"R = r + π,

where r is the real (inflation-adjusted) rate of interest and π is future inflation. Then, suppose that the central bank increases the nominal interest rate R by raising its nominal interest rate target by 1 percent and uses its tools (intervention in financial markets) to sustain this forever. What happens? Typically, we think of central bank policy as affecting real economic activity—employment, unemployment, gross domestic product, for example—through its effects on the real interest rate r. But, as is widely accepted by macroeconomists, these effects dissipate in the long run. So, after a long period of time, the increase in the nominal interest rate will have no effect on r and will be reflected only in a one-for-one increase in the inflation rate, π. In other words, in the long run, the only effect of the nominal interest rate on inflation comes through the Fisher effect; so, if the nominal interest rate went up by 1 percent, so should the inflation rate—in the long run."

>>53536754
https://twitter.com/i/status/1580950865371725824

>>53536754
i fucking knew it
anyone who trusts the news is fucking stupid
these economists have all these charts they can see that the high rates of the 70’s led to higher prices
they’re so shady

>>53536771
>https://twitter.com/i/status/1580950865371725824
thats stanley drunkenmiller offering an opinon
wher's your chart dumbass?
i dont care what investment bankers say, i want numbers that prove it

>>53536804
that's not an opinion retard

>>53535834
bobo coping HARD

>>53536804
It’s obvious when you combine CPI and fed funds rate charts
these bankers have retards like this
>>53536771
believing that higher banker profits would lower inflation when the most important factor is the true cost of money for banks, the reserve requirements which is currently at 0% in the us
how could normies and idiots here be so dumb?

>>53536821
yes it is
but keep thinking that supply inflation isn't affected by the reserve requirement at the fed
banks can literally hand out loans to whoever they deem credit worthy without any money down and higher rates means they make more money per $ loaned but you're so naive that you think that higher profits discourages banks from loaning to their own investment firms
something that has been legal since clinton repealed glass-steagall
fucking jew lover

>>53536821
>he trust a jew
from the jewish telegraph agency
"Druckenmiuller, who is Jewish, gave $700 million to his foundation last year and will apparently ramp that up in coming years."

>>53535613
>He did in real terms.
Any rate hike was already priced in at this point, the market is just speculating if the hikes would be lessened.
Cope seethe etc
time for electric boogaloo reloaded

>>53536783
I should’ve known they had all the cattle fooled
why doesn’t the news mention the reserve requirement for banks? Fed funds rate going up fucks workers while the banks still have free money
This shit is nuts

>>53536754
This shit is over most people’s head anon
you’re probably arguing with people from shithole countries based on the use of accent marks over vowels

>>53536947
Powell said so in his speeches. Rates will rise until demand is destroyed. His archenemy is wage increases. The entire point of raising rates is to diminish the purchasing power of the common man

t. zoomer brainlet with English comprehension skills

>>53537025
>His archenemy is wage increases. The entire point of raising rates is to diminish the purchasing power of the common man
You’re too smart for this place anon

>>53537045
is there anywhere better?

>>53534895
what? all he said is that if everything goes as expected, we're ending up between 5-5.25%. the market still thinks for some reason though that this won't happen

We’re reaching levels of bobo cope that shouldn’t be possible.

>>53536754
That took me 15 mins to decode your big brain post.
>In other words, in the long run, the only effect of the nominal interest rate on inflation comes through the Fisher effect; so, if the nominal interest rate went up by 1 percent, so should the inflation rate—in the long run."

So as a example of your thinking if a 1 dollar at par bond, had a one thousand percent yield, this would lead to massive inflation in the long run as the money supply would greatly increase. So "high rates = always low inflation" is not really true. Am I understanding you correctly?
>>53537025
But what about what this Anon said. Higher rates can lower demand in the short term right? You said so yourself
>But, as is widely accepted by macroeconomists, these effects dissipate in the long run.
So just yank up rates for a little bit to kill demand.

>>53537225
>the market still thinks for some reason though that this won't happen
you idiots act like the market is a single entity and higher rates means everyone sells
its much more diverse and complicated than interest rates going up = assets going down
everyone who sells because rates are going up has already sold
who is going to sell stocks every time rates go up? how stupid are you guys?
rate hikes are priced in and the banks are slurping with free money

>>53537328
>So just yank up rates for a little bit to kill demand.
that's exactly what they did
we saw our short term dip because of the spike but this has been going on for a year now
the market has priced rate hikes in and I would bet money that banks are using 0% reserve requirements to slurp this dip

Bears massively butthurt that JPow successfully manouvered the soft landing

>>53536059
>Not when the reserve requirement for banks is literally set to 0%
very few realize that. I hope someone here isn't holding a lot in the banks. What is a "bail in"
https://www.youtube.com/watch?v=jAQg7wkK4as

>>53535658
You're right, but no one cares rn.