“…The problem with this inflation is it’s based on shortages & not on a speculative boom. The Fed raising interest rates can’t solve this…” - Martin Armstrong
Plain, Simple & absolutely TRUE, so, why is The Fed doing this?..
Probably raising rates shows the voters they are doing something because that is what they’ve been conditioned to believe in the past, even though the theory of too many dollars chasing goods so reduce the money supply, is not the cause of inflation.
How many voters have taken an Economics 101class?
Also if someone has an interest variable loan, they will possibly be squeezed out of their home into foreclosure. It also will prevent many from qualifying for a home loan due to the increase in the monthly payment and income required to pay the loan…remains a renter, just like Blowhards at WEF promised.
Someone with built up home equity at a 3 or 4 percent loan who wants to refinance pays more when they refinance. I remember when home loans had double digit interest rates, houses were still selling.
