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<blockquote data-quote="newfie" data-source="post: 5349830" data-attributes="member: 58700">If the inflation rate stays up the fed will keep jacking up the interest rates. the fed is raising the rates too quickly . good management of this economy is to make smaller incremental changes sooner. there is nothing that would have stopped them from making a few modest changes in the rate the last couple of years. a couple more months of high inflation rates followed by higher interest rates can and will strangle this economy.at the same time if the inflation rate slows a bit than the market could move the other way. inflation is caused when there is more money in the economy than there is product to buy.&nbsp; this creates competition which drives up the cost of the product. the government pumped 6 trillion dollars into our economy in the last couple of years at the same time we had supply shortages bad combination. the government just passed some bills that could add another trillion dollars to the economy and keep feeding the inflation. the river is&nbsp; overflowing its banks and our solution is to pump the excess water back into the river.</blockquote>

[QUOTE="newfie, post: 5349830, member: 58700"] If the inflation rate stays up the fed will keep jacking up the interest rates. the fed is raising the rates too quickly . good management of this economy is to make smaller incremental changes sooner. there is nothing that would have stopped them from making a few modest changes in the rate the last couple of years. a couple more months of high inflation rates followed by higher interest rates can and will strangle this economy. at the same time if the inflation rate slows a bit than the market could move the other way. inflation is caused when there is more money in the economy than there is product to buy. this creates competition which drives up the cost of the product. the government pumped 6 trillion dollars into our economy in the last couple of years at the same time we had supply shortages bad combination. the government just passed some bills that could add another trillion dollars to the economy and keep feeding the inflation. the river is overflowing its banks and our solution is to pump the excess water back into the river. [/QUOTE]

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