Quote:
Originally Posted by ASAP
I am still a little confused here... you said unemployment is only rising due to shedding of excess covid capacity and excess hiring during that time. If that is true as you said, interest rate adjustments will have no impact on that since those jobs aren't coming back... keeping prices stable won't help the consumer after a 30% rise in goods over the past 5 years... so I still don't see how the current rate cut helps the average consumer. Lowering rates will further destabilize that... and like you said a strike could hamper that further.
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Shelter/housing is the single largest factor in the calculation of CPI. Dropping of the Fed Funds Rate has helped bring average mortgage rates from 8%+ to just below 7%.