Going back to the topic, what can Jerome Powell do to truly curb inflation and put it under control? It might be higher for longer for the rest of the year/cancel the three rate cuts in their schedule. They perhaps should also tighten more. There's a risk that a recession might happen, but if Powell doesn't do it, inflation itself might cause the recession. How many "soft landings" have there been in U.S. history?
If we remove the "normalizing the US regime" option, there isn't much left other than increasing the interest rates instead to try and battle inflation.
In any case, things in the world are getting too unstable to predict anything anymore. On top of all that, China is acting like more of a weasel these days which makes things even more complicated and less predictable. Keep in mind that US regime sees China as its biggest threat and has majority of its resources focused on "battling" China.
Ser, you are talking entirely about something else. I'm merely talking about Jerome Powell, CPI, and interest rates.
The strategy of increasing interest rates to lower the inflation has a lot of prerequirements.
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The problem is, they have no idea what else to do! Playing with interest rates is the only thing they can come up with LOL but it has an ugly consequence called recession.
Assuming those prerequisites you ticked off are in fact necessary (and I'm not really doubting you), then yeah....the US has painted itself into an economic corner and
may use the only tool it thinks it has at its disposal, interest rate adjustments.
But while the latest number was higher than it has been for months, it still isn't anywhere near as high as it was from May 2021 until the end of 2022. Bleak as things may appear, I take some solace in that fact (even though I still think we're all fucked in the long term because of the constant money printing). It's no wonder precious metal prices have been skyrocketing as of late, and I'm surprised that hasn't been discussed more on bitcointalk. Gold has soared past its ATH if I'm not mistaken, but I would have expected a ton of "
BTC vs. gold" or other related threads dealing with gold.
Ah well. Stock up on seeds, water, and build that bunker if you haven't already. If not for yourself, then for your kids.
But how high inflation currently is today isn't the point. The point is it's sticky, and because of that, the Federal Reserve can't cut the rates and pivot to QE if they actually need to. Jerome Powell's choices are,
- Hike more, risk a recession and kill inflation.
- Do nothing, and wait for inflation to cause the recession for him. Sooner or later something will break.
