Raising interest rates is the wrong solution to the inflation problem, analyst says
Raising interest rates to tame demand and therefore inflation is not the right solution as high prices have been mainly driven mainly by supply chain shocks, MBMG Group managing partner Paul Gambles said.
"Supply is very difficult to manage, we are finding across a whole bunch of industries, a whole bunch of businesses, they're having very different challenges just turning the taps back on," he said.
"And the Fed are the first ones to put up their hands and say monetary policy can't do anything about supply shock. And then they go and raise interest rates," he added.
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beedeebee : exactly, and also oil price.
efficentupup OP beedeebee :
Mike Obama : good stuff!
Mike Obama : i remember the days when J POW spoke. the markets trembled!
efficentupup OP Mike Obama :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
efficentupup OP Mike Obama : relax
Spencer Han ouhshuo : this is equal to saying nothing. when coming to fighting inflation, there are only a few weapons that feds can use. resolving supply chain issues have elements far beyond feds can reach. so it's only feasible that they destruct demand first and hopefully that influence can back track to upper stream supply.