Down 4,387 Points Since Fed Reserve Threats in October

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Who appointed Jerome Powell?

Slow death until election.


Thanks for asking commie

Deep State doing work.

^

Main Street is fine.

Wall Street is moving money around from stocks to bonds.

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Federal Reserve Chairman Jerome Powell

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Who appointed this jackwagon??

I’m not an economist so can someone explain why it’s important to slow the economy down?

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I’m not an economist so can someone explain why it’s important to slow the economy down?

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Not a economist either, but I will take shot.

To control inflation, if the economy is good and growing fast consumers suddenly have more money to spend on stuff which increases demand for goods. The price of goods rise until supply catches up with demand. This continues until we enter s recession and demand for goods declines. The Fed uses various monetary policies like adjusting interest rates to attempt to keep this economic cycle form happening to fast, in other words they try to increase the time span from "boom to bust."

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I’m not an economist so can someone explain why it’s important to slow the economy down?

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Well raising rates can be problematic, but so can low rates. This is why inflation is such a major factor in the rate decisions.

When Reagan took office during high inflation, they used drastic rate hikes to combat inflation. On the other hand, deflation is a problem, and they commonly occur (or could cause) recessions. If the rate is extremely low, then the fed doesn’t have much room to stimulate the economy. And negative interest rates are possible, but their impact is apparently not very well understood.

So the fed targets a low, but not too low, inflation rate. Since that’s typically believed to be the ideal. Not too high where purchasing power decreases noticeably in a short time, but not too low where people are reluctant to invest and consume.