Originally Posted by
SonicFlyer
1- interest rates don't punish savers, inflation does.
2- inflation is caused by the printing of money
3- inflation is a hell of a lot more than "5%" .... if the government is willing to admit that amount, then it is probably double or maybe even triple that. The real question is whether or not it will turn into hyperinflation.
1. In theory however a world of zero % interest and zero % inflation has never happened. Interest rates have been historically low for a while and savers are getting crushed by the near zero interest rate with 2-3% inflation. It started to improve right before this mess but unfortunately the fed had to go near zero to keep money flowing.
2. true that’s why the fed needs to raise interest to take some printed money out of the market.
3. agreed and again the fed needs to think about a 1/4 raise near term imo. It seems that a half a point for 2022 is priced into equities so I’m sure to not rattle markets that’s what’s going to happen.