I keep seeing the Fed saying the goal is to get inflation down. The problem is inflation is measured year over year. Even if inflation is 3% next year, that just means prices will be 3% higher than they are this year. How the hell does a 3% inflation target fix this cost of living problem? If anything the Fed would need deflation or at least a goal of 0% for a couple of years to allow living wages to catch up to cost of living. Seems like the Fed has lost their damn mind and don't realize inflation is ever compounding on the cost of living. If you have 9% inflation this year, that 3% increase the following year is a lot more on the cost of living than a 3% year that's proceeded by another 3% year. It seems like either the Fed has to go with a 0% inflation goal for at least the next 3 years or the cost of living problem is only going to continue to snowball out of control. If the fed doesn't want to tank the market themselves, the high cost of living surely will once consumer spending for non essentials plummets in the earnings reports. This whole 3% target is a joke, unless every company is going to give their employees a 9% year this year to offset the damage that has already been done, which seems highly unlikely. Seems like we need a 0 inflation policy for a few years to fix this problem, but of course the Fed doesn't have the balls for this. Just my opinion. Thanks for reading my rant.
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