Re:Fed increases target rate to 3.75-4.00%
by harambae on Wednesday November 02, 2022 @05:35PM
(#33443237)
It won't necessary reduce the price of food or gas much (some nominal decrease from "discretionary," or non-essential, spending on both).
It will bring down housing, which is 1/3 of the CPI by weight and helps get the Fed's inflation metrics down. (Just as an example, it won't make as much sense to leverage up and buy 5 Airbnb's at higher interest rates.)
It will bring down housing, which is 1/3 of the CPI by weight and helps get the Fed's inflation metrics down. (Just as an example, it won't make as much sense to leverage up and buy 5 Airbnb's at higher interest rates.)