Author: chip

Cpi 0322

FED’S ZANY ZIRP FLUB-UP

Why did the Fed wait until March 16, 2022, to raise the Fed funds rate from zero to 0.25 percent, with inflation running at 8.55%? Why did the Federal Reserve’s expansive monetary policy, known as ZIRP (zero interest rate policy), create bubbles in crypto, SPACS, meme stocks, and unprofitable technology companies and then burst it?

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 “Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”

SHORT VERSION → Inflation Reversion Core Inflation has averaged 3.2% over the past 62 years. Core Inflation is currently 5.1%; the FED’s target rate for inflation is 2%. How long will it take for Core Inflation to revert from 5.1% to 2%? Take notice during the 70s and 80s when inflation spiked above the 2%

read more  “Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”