MEHMET E.
Google
Fed Rate Decision and Hidden Facts. An America to Candle the 1929 American Economic Crisis WAKE UP! : We watched the May and June interest rate decision announced by the Fed, and the questions asked by respected American economic writers to the Fed chairman and the Fed chairman's answers on live TV broadcasts.
Respected economic writers have indeed asked Fed Chairman Powell some very original questions. President Powell's answers, on the other hand, reflect the facts, but 'he avoided speaking the real truth in such a political way! This was the President's primary duty.
Indeed, the relationship between the respondent and the questions required it.
Fed Chairman; He has declared to the whole world that they will take a "hawkish stance" in the fight against inflation. But no economist asked the hidden truth, and neither did the President. He couldn't explain!
So what were these facts? What are the facts that are hidden from the American public, such as interest rate hikes and balance sheet reductions in the fight against inflation?
If you examine the Fed's balance sheet, you can easily observe that the United States has a debt stock of 30 trillion dollars.
What can you say about the contradiction here?
The contradiction is: Has the Fed declared that it will reduce inflation by raising interest rates? It did.
For example: May interest rate increase 0.50% basis point. 0.75% base point increase in June.
Now the question is? If the Fed wants to narrow the balance sheet, won't a 0.50-0.75 basis point increase in interest rates increase the debt stock in the balance sheet?
Why don't economists question this? Why are the American people being misinformed?
1- May interest rate hike balance sheet cost: $30 Trillion x 0.50% base point rate hike - $150 billion,
2- June interest rate hike balance sheet cost: 30 trillion dollars x 0.75% base point interest rate increase: 225 billion dollars,
Only: May, June Interest Rate Increase Cost ; 375 billion dollars.....
Another 0.75% basis points was considered in July. You can calculate that too. My account was made with simple interest. Consider compound interest.
To summarize: By the end of 2023, the Fed will look at macroeconomic data and increase interest rates by 3.5% basis points. The cost to the American economy is 1 Trillion Fifty Billion Dollars.
This is a " boomerang, do you think inflation will stop ?" Once you start increasing the rate, you can no longer lower it. When other macro data come into play, much worse days are waiting for you, Mr. FED, than the 1929 American Economic Crisis.
Solution: Do not increase the interest rate, manage the supply-demand balance well. Stop printing dollars. Do not lie to your people. Return home from your bases on Earth. Your budget is not annual. Do it every 3 months. Teach your rich people that your country will be more beautiful when they "share their income". That's enough.
The sense of justice in the American people and the products grown on American soil are enough for you and the world. LEARN TO SHARE, NOT TO WAR. BELIEVE THERE IS NO THING LIKE INFLATION..
Kind regards.
Mehmet Erol