Rather Than Sink Main Street by Raising Interest Rates, the Fed Could Save It. Here’s How.
The central bank has the tools to help American families suffering from rising food and energy bills right now, with a bit of updating to its rules.
Inflation is plaguing consumer markets, putting pressure on the Federal Reserve to raise interest rates to tighten the money supply. But as Rex Nutting writes in a MarketWatch column titled “Why Interest Rates Aren’t Really the Right Tool to Control Inflation”:
It may be heresy to those who think the Fed is all-powerful, but the honest answer is that raising interest rates wouldn’t put out the fire. Short of throwing millions of people out of work in a recession, higher rates wouldn’t bring supply and demand back into balance, a necessary condition for price stability.
Read the full article on ScheerPost here.
Best wishes, Ellen
Rather Than Sink Main Street by Raising Interest Rates, the Fed Could Save It. Here’s How.
Ellen, I still believe that the Fed should be abandoned. I favor the adoption of a cryptocurrency backed by gold and silver. For an example, see Kinesis Money at https://kinesis.money
thanks again for this revelatory post.