re: Powell: Fed can maintain higher rates for "as long as needed"

quote:

---

raise rates while at the same time regulating the piss out of fossil fuels

---

The Fed can raise rates but plays no part in regulating fossil fuels. You know that, right?

quote:

---

then have the balls to act like they don't understand what the issue is...

---

I think maybe it's YOU who doesn't understand what the issue is.

Can you overlay home prices over that adjusted for inflation?

quote:

---

When a bag of chips is 10 bucks

---

I remember back in '73 when the price of a candy bar doubled from 5¢ to 10¢ causing me to then come up with an extra penny for tax. If you had told me then that one day a candy bar would cost $1, I would've said you were crazy.

quote:

---

When a bag of chips is 10 bucks

---

I no longer think that's crazy. It's inevitable.

There’s a line of thought gaining some traction that higher interest rates are fueling the economy’s growth. So much money printed in past couple years that lots of people have more money to spend as a result of higher rates. This scenario hasn’t existed in previous rate hiking environments.

Tldr, we’re screwed either way.

quote:

---

You wish we were building castles for Norman lords and drinking a gallon of beer a day while performing manual labor?

---

frick that... I hate Oklahoma

Gallon of mead or ale sounds great though

quote:

---

But, but, but all the realtors ( mainly male ones) that I know took to face book and said there would be three rate cuts this year. Clowns

---

My favorite was someone on Money saying, back when cuts didn't happen in February, that he could still see five cuts happening this year.

This admission by JPow is on the same level of their realization that inflation wasn't going to be "transitory" after all. I've been saying for months we would be lucky to get ANY cuts this year, much less three and that we are much more likely to see an increase before we see a cut.

Here's the thing many seem to not want to realize: more inflation is coming. Constant consumer debt creation and constant escalating federal debt creation are already creating more inflation, but we're very likely to see the pace pick up over the summer due to oil.

OPEC doesn't look to be raising their production to any significant amount anytime soon but demand is expected to escalate. We're at our max for gasoline refinement and we're getting into the more costly summer blends. Prices at the pump (nationally) are up ~$.20/gallon from a month ago (which is ~$.02 less than this time last year) and we don't have enough SPR to lessen the impact. At this point, $4/gallon (nationally) before the summer is out is likely.

We need to send billions more to Ukraine.

We’re going to have demand driven moderate inflation for the next decade… the largest cluster of millennials, already being the largest population group in the country, are just entering the absolute prime of their spending years (35-45 years old). That’s going to cause a consistent demand push for the next decade that will make anything below 3% inflation extremely hard to achieve. People need to expect 3-5% as our new baseline, and prepare accordingly

Makes me glad I bought TIPS at the end of 2022.

Good I’m finally making a return on my cash.