April CPI Did Not Just Kill Rate Cuts, It Brought Rate Hikes Back Into the Conversation
April CPI Did Not Just Kill Rate Cuts, It Brought Rate Hikes Back Into the Conversation
April CPI Did Not Just Kill Rate Cuts, It Brought Rate Hikes Back Into the Conversation
April CPI Did Not Just Kill Rate Cuts, It Brought Rate Hikes Back Into the Conversation
4 Comments
Yeh, crypto gains have to wait more.
If economy is allowed to run hot (high inflation-low rates) those with assets benefit. If economy is held in check (low inflation-high rates) normal people with a salary and savings benefit.
Right now, people have forgotten what interest is because banks haven’t paid any since 2007-08. If they did, people would be less eager to see it taken away so that they have to seek yield elsewhere to keep up with inflation.
If they raise rates, people will hold cash equivalents to get interest, choosing not to buy expensive stocks. If they keep rates low or lower them more in the face of high inflation, the casino intensifies.
People have no interest in interest.
Dual mandate freezes them. The job market is dying.