I Still Need Help Understanding Macroeconomics [View all]

[gab13by13]

So now the Fed, smart economists, mainly the Fed president from Minneapolis are all hedging cutting interest rates. Last week when the Minneapolis Fed president did his negative fed speak the stock market tumbled.

Here's where I am coming from; this latest negative Fed speak is based on a magical inflation number of 2.0. All economic policy has to be based on getting inflation to 2.0. Here is where I disagree, me, someone who only took Econ 101. Inflation can be maneuvered, triggered. Don't give me that lesson I had in Econ 101 about the invisible hand of the market, there are visible hands, merely the mention of a possible war between Iran and Israel sent the price of oil to $90 a barrel. I don't see the price of oil going down because it will be manipulated to stay high. I can even envision 5 dollar gasoline right before the election. Oh and the price of oil/gasoline is a driver of inflation = no rate cuts, maybe rate increases.

We did have a supply issue during the pandemic which caused prices to increase boosting inflation. Now the supply issue seems to have abated where is the invisible hand of market lowering food prices and other items? We consumers are well off enough to keep paying the higher prices it seems.

Unemployment is down, wages are up, stock market is at an all time high and yet the sand in the gears, that magical 2.0 inflation number. Why the hell can't our economy run smoothly at 3.0 inflation? Why hasn't anyone asked that question?

The invisible hand of the market only works if people in high places allow it to work.

The fuckers want a downturn in the economy right before the election and "they" can or will try to make it happen. Talk me off my ledge.