Interest rate hikes are having little impact on inflation

[Saltwater60]

I hate to say I told you so.

Interest rates vs. inflation rates: How the G7 countries compare to Canada

With inflation rates at multi-decade highs, central banks in G7 nations have been rushing to raise interest rates. But a CTVNews.ca analysis shows the intentional hikes may not be doing much to bring down stubbornly high inflation rates to pre-pandemic levels.

www.ctvnews.ca

 

[99cummins]

Depression in…3…2…1…

 

[tirwin1]

In fairness there is a delay between any increase by the Fed and any impact on the economy. However as CTH has pointed out the bulk of our inflation is energy based and therefore less susceptible to the impact of interest rate increases. So our environment is stagflation for the foreseeable future.

 

[Saltwater60]

In fairness there is a delay between any increase by the Fed and any impact on the economy. However as CTH has pointed out the bulk of our inflation is energy based and therefore less susceptible to the impact of interest rate increases. So our environment is stagflation for the foreseeable future.

Correct. The bill is good, energy, housing, and vehicles. These are all things that are needed. Rents are screaming high and with food and energy high across the board this is why I doubted rate hikes would have a good quick impact. The workforce is still at a low rate and the jobs report is still showing an increase so that leads me to believe things will not improve in the near future. People need to lose jobs, houses, and cars in order for things to get back to normal. Without higher unemployment o don’t see this happening quickly or fast enoug to bring inflation back in line.

 

[spat]

No, they are having an effect.

They are removing money from the economy, and that is slowing inflation.

But, we're just seeing too little too late.

This stuff needed to be in the same magnitude as the lockdowns and the stimulus combined to offset inflation, and it needed to happen 2 years ago.

What we're seeing is what's left of inflation *after* all the economic suicide pills they are taking.

The covid overreaction may still be fatal.

It's like someone taking a fatal overdose of speed, then countering it with an OD of barbiturates an hour later, and crossing their fingers.

 

[RedBreast21]

In the 80's Paul Volcker Regan's fed chairman, raised rates to over 12% instantly in order to tame the out of control inflation of the Carter era. That is what is needed today but it would have devastating effect.

Today the Fed and others try to balance rate hikes and the stock market. Raising rates to where they actually need to be to stop lending and the printing of cheap money because it would tank the markets. So the game that's played today is a financially dangerous one. With inverted bond yields especially short term yields, and a DOW number that doesn't reflect the the bond rates is serious concern. See, money flows from the market to bonds and vice-a- versa. One goes up the other goes down as money is moved from one to the other. This of course happens in a normal economy. So having bonds over 4% and DOW 32k, not possible unless the government is doing the buying with money allocated for something else. This in order to prop up a failing economy for elections.

I've said it here before on this message board and its worth saying again. Check out BRICS. A group of nations, with more requesting membership, are set on removing the USD as the world reserve currency. They collectively control most of the worlds commodities and soon oil.

All will be clear after that.