The Federal Reserve – How are they controlling inflation by influencing interest rates?
- Are they heading in the right direction as it relates to interest rates and its effects on inflation?
- Did they wait too long before taking any action, hence, a sense of urgency to crush the economy?
- Should the economy maintain its current status, and the unemployment number remain in the 3.5% to 3.9% range, would the fed increase the next rate increase to say 100 basis points?
- Or vice versa, if the economy shows signs of faltering and suddenly unemployment jumps to say 4.5% to 5.0%, would you expect the Fed to pivot, taking the opposite course as it relates to interest rates?
- What effects would points 4 & 5 have on inflation respectively?