Fed Policy too Easy to Hit 2% Target, Says Thomas
2024 ж. 20 Мам.
5 583 Рет қаралды
"You have to conclude that policy has been too easy to hit a 2% inflation target." Jason Thomas of The Carlyle Group says the Fed may be implicitly moving to a higher target, he spoke on Bloomberg Surveillance.
They need to raise rates.
Higher rates aren't going to stop the government overspending... They have proven that... Our "representatives" need to pull their head out of their butts and do what needs to be done even if it means they won't get re-elected! This leads me to the real problem... The voters!
The goal is to raise rates so they are restrictive for the poor while providing liquidity for the rich. That's the soft landing. Political Reserve is accomplishing its goal.
good interview
I liken this to the Covid stimulus in the US. The outcome was a 9% inflation rate. THE fed printed the money and now has raised interest rates to drain all that surplus money out the economy. CAN Thailand 🇹🇭 economy handle a 9% inflation rate is the question.
Good commentary. No rate cuts this year. The market needs to just get over it.
@Bloomberg do look into M1 money supply and what happens when borrowing excess more to run the govt, you might get to see why the inflation is still growing or the currency within the nation getting depreciated.
Bingo! Yellen seems to be having difficulty selling Treasury Notes. Most of the Buyers do not love America. Gaza reduced the buyers even more.
Let’s get poor people 30 percent interest rate for cars and credit cards. Nice job fed… that will help poor people for sure.
All talk about lowering rates right now should stop. Interest rates too low make the home prices and everything bought on time go up. This happens because the home sellers, particularly the agents, will push the price as high as the buyer can afford to pay at the lower interest rate. Lower rates makes the payment come down on a very overpriced home. When rates then go back up people can't buy the same home because at the same price the payments are more expensive. So the agents watch the affordability of the buyer, and their goal is to press the price as high as the buyer can afford. This is why rates too low are as bad as rates being too high. Rates now are not too high. Prices are too high, and we need deflation to bring those home prices down. Same for autos and land, as well as all the things that the flood of money by government has caused inflation in. The government should raise rates and cut spending. Right now there is no room to lower rates. That would be moving toward rates too low and more people will not be able to buy a home due to the price increases. Homes will become smaller and smaller yet massively overpriced. Rates should be increased to bring about deflation, and then slowly reduce rates to a balanced normal rate between 5-7% in a very low inflation environment. Then after massive spending cuts, money should be injected into the system only as business supply and consumer demand needs money to expand in a controlled manner. That is how money supply should be managed and how inflation can be managed. 0 to 1% is best for inflation. Only the very rich who own most of the goods and services that rise with inflation want to make money from inflation. It hurts 98 out of 100 people in the long run. Especially as it has now having gone up much faster than wages have. We need deflation. Raise rates and cut spending.
You have an unpopular opinion but I agree with you. Most people won't and that's why we (The Government) will keep spending like stupid. If only we had competent people on the hill. But we get what we vote for.
You do need to consider the effect of Treasury Cash being absent from Markets? How much of the spending that is providing some form of stability in Markets, is originating in the Treasury? Speculating about the ability to sell Houses, does not decrease the cost. The only People who seem to buy are Wealthy People. That seems to eliminate about 75% of Buyers.
Very informative!
Without Investors supporting Treasury, what will be the effect on Janet Yellen selling T-Notes? If Treasury is unable to support the FED who will do that work? If the US Dollar crumbles, what is left for progress? If you think Inflation is high today, what will a deflated Dollar do?
Below-2% CPI with a recession by the year-end. They should reverse QT asap! Monetarism works.
I think he is just mad his shorts aren't working out 😂😂😂😂
Delusional
Fact
Bot