As we see Federal reserve increased interest rate frequently to control inflation and it totally didn't work.
How did Jerome Powell respond to inflation?
It is like we have a tank that has a big hole in the bottom, and to avoid decreasing the liquid, we add more gallon of that.
No body can convince investors that fed still should keep hiking interest rate. The decision causes more stress in financial system. soon more banks will face bankruptcy. And what will be next action of Fed?
Subsequently again rising interest rate.
Anyway, as chart shows there are three scenarios that have been drawn in three different colors. White shows repeating the previous rise which repeated two times. Green shows Jerome Powell's decision wasn't a good idea. On the other hand, red shows that even though the decision was tough, could work for a while.
I wish the best for all of you specially those who work hard to keep the value of their assets.
How did Jerome Powell respond to inflation?
It is like we have a tank that has a big hole in the bottom, and to avoid decreasing the liquid, we add more gallon of that.
No body can convince investors that fed still should keep hiking interest rate. The decision causes more stress in financial system. soon more banks will face bankruptcy. And what will be next action of Fed?
Subsequently again rising interest rate.
Anyway, as chart shows there are three scenarios that have been drawn in three different colors. White shows repeating the previous rise which repeated two times. Green shows Jerome Powell's decision wasn't a good idea. On the other hand, red shows that even though the decision was tough, could work for a while.
I wish the best for all of you specially those who work hard to keep the value of their assets.