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IronLionZion

(51,551 posts)

2. People are getting squeezed by these rates, so they buy less

Reply to BumRushDaShow (Original post)

Fri Mar 31, 2023, 11:14 AM

Mar 2023

which is entirely the point of raising rates. If people can't afford financed payments on big items, they cut back spending on smaller items like food and other products.

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Key Fed inflation gauge rose 0.3% in February, less than expected [View all] BumRushDaShow Mar 2023 OP

I believe I was just looking at this report Yonnie3 Mar 2023 #1

People are getting squeezed by these rates, so they buy less IronLionZion Mar 2023 #2

Also, businesses have higher costs to service their debts which they got when debt was cheap. Yavin4 Mar 2023 #4

Businesses might also raise prices because of higher interest payments IronLionZion Mar 2023 #6

"On a 12-month basis, core PCE increased 4.6%" peppertree Mar 2023 #3

Wouldn't that cut the wrong way? Igel Mar 2023 #8

Well - for starters, 4.6% inflation ('core' or not) is utter fantasy peppertree Mar 2023 #9

Dunno, what do you think the inflation rate is, and based on what? progree Mar 2023 #10

Graphs - latest PCE, CPI, PPI (both regular and core). And rolling 3 mo, 6 mo, 12 mo of core PCE progree Mar 2023 #5

Time for the Federal Reserve to halt rate increases. roamer65 Mar 2023 #7

I agree on a pause. Not on planned cuts. oldsoftie Mar 2023 #11