09-04-2022, 11:33 PM
Do you believe the Fed will ever come to the realization that inflation is structura
<!-- SC_OFF --><div class="md"><p>Do you believe the Fed will ever come to the realization that inflation is structural and no matter how much demand they destroy by increasing interest rates, supply chain issues will keep commodities elevated?</p> <p>If I Game Theory out the market, it seems likely that energy costs will remain elevated until the end of the year, and since unemployment is currently low, I believe the Fed will at the very least raise interest rates another 50 basis points. </p> <p>The question becomes that if unemployment increases, our country sinks into the anticipated recession will the Fed reverse course, or if inflation persists, will it keep raising. I'm in the camp of the Fed suspending rate hikes in the situation unemployment increases significantly or we enter into a recession but I'm interested in hearing your thoughts.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/easymyk12"> /u/easymyk12 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/x5h6oa/do_you_believe_the_fed_will_ever_come_to_the/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/x5h6oa/do_you_believe_the_fed_will_ever_come_to_the/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>Do you believe the Fed will ever come to the realization that inflation is structural and no matter how much demand they destroy by increasing interest rates, supply chain issues will keep commodities elevated?</p> <p>If I Game Theory out the market, it seems likely that energy costs will remain elevated until the end of the year, and since unemployment is currently low, I believe the Fed will at the very least raise interest rates another 50 basis points. </p> <p>The question becomes that if unemployment increases, our country sinks into the anticipated recession will the Fed reverse course, or if inflation persists, will it keep raising. I'm in the camp of the Fed suspending rate hikes in the situation unemployment increases significantly or we enter into a recession but I'm interested in hearing your thoughts.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/easymyk12"> /u/easymyk12 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/x5h6oa/do_you_believe_the_fed_will_ever_come_to_the/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/x5h6oa/do_you_believe_the_fed_will_ever_come_to_the/">[comments]</a></span>