03-22-2022, 02:52 AM
Why is the Federal Reserve raising interest rates going to lower inflation?
<!-- SC_OFF --><div class="md"><p>fed raising interest rates: forces businesses/corporations who are looking to continue financing growth through debt/loans spend more due to higher interest rates, aka less free cash flow (since it will cost more to service any new loans going forward) aka less money to hire people with, give bonuses/raises, reinvest into the company, etc.</p> <p>how does this slow inflation, which is mainly driven by supply constraints + commodity prices?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/waltwhitman83"> /u/waltwhitman83 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/tjpdnx/why_is_the_federal_reserve_raising_interest_rates/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/tjpdnx/why_is_the_federal_reserve_raising_interest_rates/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>fed raising interest rates: forces businesses/corporations who are looking to continue financing growth through debt/loans spend more due to higher interest rates, aka less free cash flow (since it will cost more to service any new loans going forward) aka less money to hire people with, give bonuses/raises, reinvest into the company, etc.</p> <p>how does this slow inflation, which is mainly driven by supply constraints + commodity prices?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/waltwhitman83"> /u/waltwhitman83 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/tjpdnx/why_is_the_federal_reserve_raising_interest_rates/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/tjpdnx/why_is_the_federal_reserve_raising_interest_rates/">[comments]</a></span>Kind Regards R