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In response to
"So the plan by the Fed was to raise interest rates so they could drop them in an election year?"
by
Mop🧹
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I don't think that's it. They raised rates to reduce inflation. It stopped. If they keep rates high it runs the risk of a recession that is common
Posted by
pmb (aka pmb)
Dec 15 '23, 14:14
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under these circumstances, but seemingly not necessary here as inflation has come down without triggering inflation. I actually fear they've waited too long, because I think the biggest driving factor of inflation was simply supply chain, dislocation caused by covid and then greedy businesses taking advantage of the opportunity to jack up prices. But that being said there was likely some overheating of the economy too. This is just how it always goes, except for the fact that the economy seems more resilient this time.
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