The USA’s new plan to stop inflation

[Saltwater60]

This is a joke. Stop buying bonds so interest rates on houses and cars will increase? People already can’t afford to buy houses or cars with the rising costs. We have 6-8 months to wait for them to act?
The measure is because 5 million jobs aren’t there? Well they need to figure out what and if those people will be returning to work. I’ve read many articles that make sense and they say x amount won’t be returning for various reasons. So the feds benchmarks maybe irrelevant for this day and age. It makes sense and if we’re too stupid to see this we could be in trouble.

Inflation is at a 30-year high. Here's how the Federal Reserve plans to deal with it

The Fed left interest rates near zero on Wednesday but announced plans to start removing some of the support it has provided to the economy as inflation hits its highest point in 30 years.

www.npr.org

 

[SomeSoldier]

Stop printing money and balance the budget?

 

[That_FNG]

Stop printing money and balance the budget?

Maybe ask the government to do something easier like providing everyone with a rainbow farting unicorn.

 

[spat]

Only the left would try to spend their way out of inflation.

These guys would put gasoline in fire trucks because it's "more powerful than water".

"the beatings will continue until morale improves".

 

[ManrisFrack]

As I understand it, ending the bond purchases IS stopping the money printing. Someone is still buying houses, might not be normal middle class families but someone has the money to buy them.

The Fed is in a corner. They have to raise rates or stop easing or both. We're in a situation where spending borrowed money is actually a way to make money as long as the asset you buy appreciates at even a fraction of the rate of inflation. As long as this situation continues people/corporations will keep buying shit at higher prices because there's very little downside to doing so. Frankly, I'm starting to wonder if I picked the wrong time to swear off debt.

 

[Saltwater60]

As I understand it, ending the bond purchases IS stopping the money printing. Someone is still buying houses, might not be normal middle class families but someone has the money to buy them.

The Fed is in a corner. They have to raise rates or stop easing or both. We're in a situation where spending borrowed money is actually a way to make money as long as the asset you buy appreciates at even a fraction of the rate of inflation. As long as this situation continues people/corporations will keep buying shit at higher prices because there's very little downside to doing so. Frankly, I'm starting to wonder if I picked the wrong time to swear off debt.

Zillow figured out the market the hard way. They are losing money on buying and flipping house so they will stop for the rest of the year.

Zillow just stopped flipping homes after scooping up thousands of properties over 3 years. Here's what happened.

Here's what we know about Zillow's abrupt decision and why it matters. Everything you need to know about the tumult, all in one place.

www.businessinsider.com

I guess my point is at this point are the traditional ways to stem inflation going to work? Many economist feel the unemployment figure should be ignored or recalibrated because they don’t feel many of the 5 million workers currently u employed will return to work.
I would just hate to see the feds make a choice based off that and be wrong. This will damage the economy. IMO another buying as many bonds is quite passive and they need to act sooner. I’ve thought this for a while but hey I’m no economist. Time will tell and I guess in 6-12 months we will see.
All I know is cars and home buying seem to be leveling off as it is on its own. I’m sure the democrats will take responsibility for it.