The US central bank has raised interest rates again, despite fears that the move could add to financial turmoil after a string of bank failures.
The Federal Reserve increased its key rate by 0.25 percentage points, calling the banking system "sound and resilient".
But it also warned that fallout from the bank failures may hurt economic growth in the months ahead.
yea it is very clear they dont care much about anything but inflation
Allegedly but raising the interest rate and specifically doing it to increase unemployment seems like it won’t do much to actually stop inflation. Historically they don’t link up, it’s just what the fed does. Classic when you only have a hammer type shit
ig it kinda "works". increasing unemployment means people have less purchasing power and less purchasing power results in less demand for goods which MAY reduce inflation.
a half ass decent socdem solution would be to tax the shit out of billionaires but neoliberalism :flattened-bernie:
It’s a very roundabout way of chasing inflation and, afaik, early models only had wage increases accounting for 1-2% of the total 15% inflation rate we were hitting. And even now wages have started to slow but it’s not having the effect on inflation rates it should if this was a sound theory. And either way that’s still purposefully causing a recession to try and combat it which is insane imo, like blowing up your house to deal with an ant infestation.
Yea classic Keynesianism would say the way to solve inflation is to tax the fuck out of the rich to soak up the excess cash but good luck finding anyone with the balls or the anti-heart-attack-gun-armor to do that
The solution to inflation is cost controls. This is not something the fed can do. Fixing inflation is not the Fed's job.
The Fed's job is disciplining workers when we take too much power.