Reply to Why is the stock market crashing, the dumb fed hasn't said anything

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[quote=Anonymous][quote=Anonymous]Screw this scam, [b]Biden better stop the fed from raising rates[/b] or hell lose the midterms and re election.

Everyone is suffering the fed is clueless they've raised too far already fire the fed they hurt genz and millennials to protect boomers[/quote]

The fed is independent from Biden.  He has no power or authority over their decisions.  Basically we're reaping the costs of 'past sins' and recent chaos from the pandemic .  We have a fed who kept quantitative easing and artificially low rates too long after 2008/2009 crash then we had a stock market goosed by Trump's tax cuts when we needed to run the economy warm  instead of hot.  Tax cuts gave a short-term sugar high for the markets, which--had the pandemic not happened--the fed could cool down a bit by raising rates and reducing bond purchases.   But before they really did that in earnest, the pandemic hit causing a lot of chaos and uncertainty and then messing up supply chains.  Then just as we got a bit of a handle on that, Russia invaded Ukraine.  Both the pandemic and Russia's invasions are inflation drivers and supply chain disrupters.  But now the fed *has* to raise rates to curb inflation otherwise it will set in even more.  The market doesn't like rate increases in the short term, and there may be a mild recession, but in the middle term, rate increases will likely be the right decision.  I personally think they should slow down the increases for the fall to see more evidence on the impact on inflation, but I also know the Fed knows a heck of a lot more than I do about macroeconomics.

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