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Robert's avatar

Thank you, I still don’t understand how inflation caused by supplychain bottlenecks resulting from covid and energy prices rising because of the Ukraine war can be reduced by raising rates? The world container index is on a strong downward trend now as some of the covid caused pent up demand has worked itself through the system. Energy prices are also going down although still high. Food prices are declining but not in shops yet. Many raw material prices such as steel , iron ore, lumber are on strong downward trends. Is the interest raise policy focused on avoiding labour to ask for a higher salary ?

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Claudia Kimball's avatar

I think it, the rate hike appetite, is a "proxy" inflation lowering justification when the REAL appetite is

keeping wages low, avoiding strikes and stopping union organization. It was obvious when the Fed

Head declared with aggressive seriousness early on that wages had to come down. Thank you for

your clarity and detailed history.

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