Fed and inflation

[moneymaker]

Am I missing something? I’ve heard from several sources that if we have inflation the fed will raise rates. Wouldn’t raising rates tend to cause more inflation? I know it cools the economy but inflation is a real monster that in my opinion the government has problems controlling.

[FlyerInHi]

Higher rates reduce borrowing, spending and investments on credit and that lowers inflation.

[moneymaker]

Cost-push inflation could be caused by tariffs or OPEC raising their prices. https://www.frbsf.org/education/publications/doctor-econ/2002/october/inflation-factors-rise/

[Reality]

Ever heard of Paul Volcker?

[moneymaker]

The inflation that some of us have been predicting for years is about to make my mortgage look ridiculously cheap!

[Author]

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