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Jun 14, 2022
2:58:06pm
Gente_Boa All-American
Yes, the Fed was way too late on rate increases, but the bigger issue is their
balance sheet. The Fed can choose to quickly reduce the money supply by selling some of the $9 Trillion of assets that they purchased over the last few years. That would get inflation in check much faster than gradual rate increases. The problem is if the Fed started selling off loads of treasury bonds & mortgage backed securities that make up the majority of their assets then the market values of those assets would plummet. And those are largely held by rich and powerful people.
Gente_Boa
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Gente_Boa
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Mar 22, 2024
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POLL: Is the FED raising rates fast enough? (greatbam, Jun 14, 2022 at 2:30pm)
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