You continue to astonish with your ignorance. Raising interest rates is to quell inflation and it has worked. GDP is a measure of the country's productivity. The Fed wants strong GDP, approximately 2% inflation and low unemployment.
SMFH
Third Quarter GDP
- Thread starter St. Louis Hawk
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SMFH
First result in Google.
Why Does Inflation Increase With GDP Growth?
Examine the relationship between inflation and GDP, learn why GDP growth leads to higher prices and understand the effects of uncontrolled inflation and GDP growth.
The goal of increasing the fed rate is to decrease inflation. Do you agree on this?
LOL - that is correct. What you said, below, is not.First result in Google.
Why Does Inflation Increase With GDP Growth?
Examine the relationship between inflation and GDP, learn why GDP growth leads to higher prices and understand the effects of uncontrolled inflation and GDP growth.www.investopedia.com
The goal of increasing the fed rate is to decrease inflation. Do you agree on this?
"The whole idea of raising interest rates is to slow down the economy."
I think we're splitting hairs here.
When the fed rate is low, more people borrow to buy cars, which increases the demand for cars and with a high demand, prices go up. This is inflation.
Increase the fed rate, car loan interest rates go up, this increases monthly payments, people can't afford to buy the inflated car prices, people stop buying. demand goes down, car inventory goes up, dealers have to lower car prices in order for people to buy them. This is deflation.
If cars are being sold at high prices, then there isn't a need to lower prices. If the gdp is high, this indicates cars are selling so there is no need to reduce prices. If the supply remains low, this will cause car prices to continue to rise.
Powell is raising the fed rate so less people can buy expensive cars. He needs car prices to come down.
Do you agree with this?
Riley pointed out your comment we are all disputing. And also your whole hyperinflation and the collapse of the economy comments lol.First result in Google.
Why Does Inflation Increase With GDP Growth?
Examine the relationship between inflation and GDP, learn why GDP growth leads to higher prices and understand the effects of uncontrolled inflation and GDP growth.
The goal of increasing the fed rate is to decrease inflation. Do you agree on this?
Pretty simple...in bad times you lower your tax and bank interest rates (to stimulate the economy).....in good times, you raise them both ( to slow them down).
I don’t think this has ever been done as national economic policy, though. Seems to me, we like to get deep into the middle of something before taking action to counter it.
LMAO. Biden’s opponents created and embraced “Brandon”. It was a slight for about a year, until the left’s policies began to work, as listed above.
Now the left uses it ironically to laugh at the Biden haters, and now WE’RE the morons.
😂🤡😂🤡😂🤡😂🤡😂🤡
I'm assuming you are saying we are in good times now then since rates are rising.
If so, how long do you think the good times will last?
Historically, it takes between ~6-16 months after rates are paused before things go sour.
Maybe you need to spell out what you are disputing. I don't know what you are saying.
Yeah I figured as much as I was reading your replies and comments
I copied and pasted exactly where I think we are now.
I don't know where you stand on the quote below. But the last time the fed rate was this high was 2007. A recession soon followed.
I say collapse because I think we are facing a major downturn in the economy. I believe it will be worse than 2008. I think it will change the way we live in the USA.
I think hyperinflation is definitely a possibility in the next few years, although I wouldn't bet on it either
" Effects of Uncontrolled Inflation With GDP Growth
Higher prices and too high an inflation rate resulting from GDP growth can have negative effects for consumers, businesses, and the economy.
Increasing prices can create misery for consumers (and businesses) who must make cuts to how much they spend or buy certain products over preferred ones. Plus, high inflation that isn't reined in by the Fed can erode consumers' purchasing power and the value of their savings and investment accounts.
It can also become hyperinflation, which can lead to ongoing spending and higher prices when people and businesses decide they must spend more now before the value of their money decreases ever more.
That spending represents demand that causes additional GDP growth and yet more higher prices. "
This is nonsense. We had 15+ years of low interest rates and very mild inflation. Rates have gone up and there is still great demand from homes and car demand is just now slowing. Prices being lowered to sell goods is discounting - it's not deflation. JFC.
The Fed raises rates to impact inflation and to do so in a way that does not cause a recession or deflation. They have been successful. Your notion that the Fed is trying to reduce GDP is ludicrous.
That your quoted statement below is ignorant.
"The whole idea of raising interest rates is to slow down the economy."
I can't get over how uninformed you are. The recession of 2008/9 was a direct result of the mortgage industry and financial collapse. It had nothing to with interest rates being slightly higher (and still historically low).
Hyperinflation? My guess is you have no idea what that even is.
Its weird that you dumbasses think you are so much smarter than me, but one of the worlds largest and influential bankers is also warning of a fed rate that may increase to 7% and a recession may be coming. Now he has even put his money where his mouth is and is going to be selling 1 million shares worth 141 million dollars. This is the first time he has done something like this in his almost 2 years as the head of JP Morgan.
There is lots of speculation as to why hes selling, but you don't sell this stock if you think it is safe and prices will be rising.
Dimon warns, "this may be the most dangerous time the world has seen in decades"
For those who said the goal isn't to slow the economy, the article says, "The Fed has spent the past 16 months raising rates in an attempt to quiet the booming US economy and bring down elevated prices".
apnews.com
www.businessinsider.com
There is lots of speculation as to why hes selling, but you don't sell this stock if you think it is safe and prices will be rising.
Dimon warns, "this may be the most dangerous time the world has seen in decades"
For those who said the goal isn't to slow the economy, the article says, "The Fed has spent the past 16 months raising rates in an attempt to quiet the booming US economy and bring down elevated prices".
Another first for JPMorgan CEO Jamie Dimon, selling shares of the bank he's run for nearly 2 decades
JPMorgan Chairman and CEO Jamie Dimon and his family are planning to sell 1 million shares of the bank starting next year, according to a regulatory filing.
apnews.com
JPMorgan's Jamie Dimon warns of recession and rate hikes, flags global dangers, and quotes Warren Buffett twice in a new interview. Here are the 8 best quotes.
Jamie Dimon rang the alarm on government spending, the Russia-Ukraine war, volatile food and energy prices, more interest-rate hikes, and recession.
www.businessinsider.com
UNPOSSIBLE
I was told by Fox, Newsmax and Twitter that we are in a recession and things suck for everyone!!!
GDP growth slowed to a 1.6% rate in the first quarter, well below expectations
Real GDP was expected to increase 2.4% in the first quarter on a seasonally adjusted basis, according to economists surveyed by Dow Jones.
Dark Brandon on fireGDP growth slowed to a 1.6% rate in the first quarter, well below expectations
Real GDP was expected to increase 2.4% in the first quarter on a seasonally adjusted basis, according to economists surveyed by Dow Jones.www.cnbc.com
