Leaders of major central banks are ready to increase interest rates to control inflation

They are targeting a rate of about 2%. Mainly influences by the current conditions in the labor markets + rising wages.

What your stand on this? The IMF warns this could trigger a financial crisis. Inflations are high everywhere (~6% EU, 4% US, 9%UK).

Remember - every action you take, take it with the thought of creating a sustainable future for yourself.

PS: Anyone knows of a fitting comminity / magazine?

PPS: We should aggree on a common terminology regarding c/ & m/ ^^

  • operator@kbin.socialOP
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    1 year ago

    Nice thought, I was thinking. Maybe inflation wouldn’t even be there, if the fed would stop intervening. The markets tend to regulate/balance themselves. Maybe we’d be better off already.

    • fiasco
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      1 year ago

      Good lord no. Markets absolutely do not regulate or balance themselves, they get caught in feast-or-famine cycles based on where they are in the current credit binge. The Fed shouldn’t be raising rates because the current inflationary episode is not driven by excess demand, and there are no data suggesting a wage-price spiral is coming.