Another Interest Rate hike. Just heard on the news. Yes, I'm angry.

[Xolodno]

23. What a lot of others have said, it slows down the economy and reverses inflation.

It slows down the Money Supply.

Here is the danger if inflation goes unchecked, soon as you get paid, you run to the store and buy a durable good (i.e. washer, appliance, car, etc.) or drop it into assets that do well during inflation (gold, silver, etc.). Because in a month, you can sell those items for more cash and get what you need. Never mind what this does to supply chains.

And some assets are just held (such as homes) and reduces supply and increases the price. One of the reasons we have not seen the housing market correct itself a bit. So high prices...high interest. Not the time to buy.

And truth be told, they are really taking the conservative approach. Paul Volkner basically yanked the cords to the machines that printed money and dropped us into a nasty recession.

Yes, its painful, but necessary. There aren't too many levers to pull to fix inflation. We can always do what President Ford did and give out buttons that said WIN (Whip Inflation Now)....which did nothing.

The Fed used to run things by having inflation targets and adjust accordingly, so an increase here and decrease there wasn't so painful. But then we got Trump, who put a ton of pressure on the Fed not to raise rates, which started to overheat the economy. Then the pandemic which threw everything into chaos. If we had gotten those increases sooner, it would have been more manageable.