Powell: Fed can maintain higher rates for "as long as needed"

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Fed can maintain higher rates

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They need to raise the rate, not just maintain it, if they want inflation to come down.

Good. Hell raise it more, whatever keeps inflation in check

They should keep the inflation. When a bag of chips is 10 bucks maybe people will lose weight

ETA: and keep high mortgage rates so us cash buyers that don’t DoorDash and lease cars can buy rent houses for cheap

Remember when this inflation was “transitory” and the fed buried its head in the sand?

wait. so inflation wasn’t transitory?

Good. They’ve been fricking savers since 2007. Interest should be minimum 9%. But Fed has been sucking Wall Street dick for 17 years.

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5. Restrictive Fed policy needs more time to work

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You have to quit printing money

We’re going to have demand driven moderate inflation for the next decade… the largest cluster of millennials, already being the largest population group in the country, are just entering the absolute prime of their spending years (35-45 years old). That’s going to cause a consistent demand push for the next decade that will make anything below 3% inflation extremely hard to achieve. People need to expect 3-5% as our new baseline, and prepare accordingly

Evidently rates are going to have to go up even higher to take more money out of the system and discourage people from spending their money like crazy. As long as the cash flow continues and people keep spending their money like crazy, inflation is not coming down.

I’m starting to wonder what kind of interest rate it’s going to take to stop businesses and consumers from borrowing more money, spending it all, and then going back for more. 10%? 12%?