News for hackers. Stuff that matters.

A comment on Soaring Student Debt Prompts Calls for Relief. Parent comment

Re:Soaring Student Debt Prompts Calls for Relief by dragonwriter on Tuesday September 13, 2016 @07:49PM (#12493193)
> Federal Reserve attempts to stoke inflation in order for the economy to reach full employment

No, the Federal Reserve attempts to provide easy money to spur employment, balancing that goal against the competing goal of controlling inflation. The Fed does not try to stoke inflation to drive employment (especially since inflation doesn't drive employment, though employment can help drive inflation.)

[ Parent | on HN ]
Re:Soaring Student Debt Prompts Calls for Relief by toomuchtodo on Tuesday September 13, 2016 @08:29PM (#12493404)
You're right, I misspoke. The Federal Reserve, through its mandate to obtain full employment conditions, creates inflation as a side effect.
[ Parent | on HN ]
Re:Soaring Student Debt Prompts Calls for Relief by codyb on Tuesday September 13, 2016 @10:37PM (#12493900)
Inflation's been really low recently.
[ Parent | on HN ]
Re:Soaring Student Debt Prompts Calls for Relief by toomuchtodo on Tuesday September 13, 2016 @10:51PM (#12493953)
We've barely scratched full employment. Who knows how long we'll be able to maintain it. The Fed has no room to cut rates if a slowdown occurs without going negative and several economic indicators are pointing to a slowdown.
[ Parent | on HN ]