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re: Raising Interest Rates Not The Best Way To Combat Inflation ….
Posted on 1/12/22 at 3:06 pm to mortgagemanlc
Posted on 1/12/22 at 3:06 pm to mortgagemanlc
It's not crazy.
Normally the fed controls by raising and lowering rates.
But over last 2-3 years... many other tools - some invented on the fly - have been used.
So it makes sense that only touching interest rates is not going to fix the problem. We have to undo all the other things we did as well.
And we need to fix the supply problem. Specifically, labor supply. We need to get people back into the labor market.
Normally the fed controls by raising and lowering rates.
But over last 2-3 years... many other tools - some invented on the fly - have been used.
So it makes sense that only touching interest rates is not going to fix the problem. We have to undo all the other things we did as well.
And we need to fix the supply problem. Specifically, labor supply. We need to get people back into the labor market.
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