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Strategies & Market Trends : The Art of Investing
PICK 46.32-1.3%Nov 13 4:00 PM EST

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To: Sun Tzu who wrote (4455)6/18/2022 3:50:15 PM
From: kidl  Read Replies (1) of 10587
 
How high would the Fed have to raise the rates for food and energy prices to come down, when their supply has nothing to do with the interest rates?

At the risk of proving my ignorance … The Fed could raise interest rates tenfold. It wouldn’t do anything to reduce inflation. While energy consumption can be somewhat curtailed by producing less “nice to have” stuff, this doesn’t apply to food and the Fed can’t fix the food shortages largely caused by the Ukrainian war.

This isn’t a situation the FED or the ECB can fix. The only fix I can see is clipping Putin's wings. A solution, I believe, would even meet with China's quiet approval.
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