ST Alpha - "Is it about making wages drop? I thought it was to incentivize more consumer saving and less consumer spending. Less demand then lowers prices. -- nm" (Reading a Post)

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In response to "A conspiracy could easily be made about the Fed determining the only way to control inflation is by raising rates until unemployment increases to the -- (edited)" by jnine

Is it about making wages drop? I thought it was to incentivize more consumer saving and less consumer spending. Less demand then lowers prices. -- nm

Posted by mara (aka mara) Feb 8 '23, 09:12

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The primary constraint of higher interest rates is on business investment and growth, leading to fewer jobs and lower wages, and ultimately, lower consumer spending. -- nm* - znufrii Feb 8, 09:15 1
- Ah. -- nm - mara Feb 8, 09:20

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