Fed and inflation

User Forum Topic
Submitted by moneymaker on October 26, 2018 - 9:29am

Am I missing something? I've heard from several sources that if we have inflation the fed will raise rates. Wouldn't raising rates tend to cause more inflation? I know it cools the economy but inflation is a real monster that in my opinion the government has problems controlling.

Submitted by FlyerInHi on October 26, 2018 - 2:12pm.

Higher rates reduce borrowing, spending and investments on credit and that lowers inflation.

Submitted by moneymaker on October 26, 2018 - 7:20pm.

Cost-push inflation could be caused by tariffs or OPEC raising their prices. https://www.frbsf.org/education/publicat...

Submitted by Reality on October 26, 2018 - 11:30pm.

Ever heard of Paul Volcker?

Submitted by moneymaker on October 28, 2018 - 7:39pm.

The inflation that some of us have been predicting for years is about to make my mortgage look ridiculously cheap!

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