RE: FED has spoken! Market will face QT [EN/DE]
You are viewing a single comment's thread:
Isn´t a rate increase leading to more dollar stacking and less investments because loans become more expensive? So wouldn´t rate increases not rather suffocate the economy? Less investments -> less new jobs.
So why are they doing this? Fear of inflation? But wouldn´t it be more prudent to make less debts to counter inflation?
0
0
0.000
@stayoutoftherz They see economy is pretty strong and will be able to handle higher interest rates. The unemployment rate is nearing all time lows, which strengthens their ground to increase the rates. As we know high inflation is not good for a country's debt, pensioners, and strength of the currency, the FED is adamant about bringing it down to 2%. In my understanding, they will continue on this path until something breaks such as housing market, unemployment rate, or the stock market, or all together!
I'll compare some of the macro metrics to shed some light on interest rates, recession, and unemployment rate in the next blog post. 😊