Commentary The Fed is about to embark on an epic quest. Like Siegfried’s battle to slay Fafner, the Federal Reserve is about to enter an epic battle with the inflation dragon. The big questions the market has been dealing with are “how many” and “how much”—as in how many increases will they have to make and how high will they have to go to rein in the beast. Higher rates—i.e. a higher cost of capital—will slow the economy along with the inflation beast. But there is, in theory, an upside to this strategy. Savers should start earning more on their money. This time might be the exception. The idea that the rising tide of interest rates will raise all boats—including savers’ deposits—is somewhat of an economic fairy tale. A bedtime story progressives like Sen. Bernie Sanders (I-Vt.) might read to his grandchildren. There is a force of reality that comes …
-
Recent Posts
-
Archives
- May 2025
- April 2025
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- September 2013
- July 2013
- March 2013
- January 2013
- December 2012
- November 2012
- December 1
-
Meta