Charles Mizrahi, founder of Alpha Investor, said the Federal Reserve’s effort to lower inflation through increased interest rates may not have the intended effect, and, as history has shown, it is a messy process. “You know, out of the 16 times they raised rates … 13 times they put the country into recession. It’s really, really a difficult act,” Mizrahi told Steve Lance, host of NTD’s “Capitol Report,” in a recent interview. “I just want your viewers to realize how this works. When the economy starts speeding ahead, the way The Fed taps the brakes is by raising interest rates, which makes the cost of borrowing more expensive. So, therefore, if the borrowing is less, if people stop spending more, inflation will start to subside,” said Mizrahi. According to the USDA, the 2021 increase of food-at-home prices, for things like meat, fruit, eggs, sugar, etc., was 75 percent above the …
Bringing Down Inflation With Interest Rate Hike Is ‘Messy’ and ‘Difficult’: Charles Mizrahi
March 24, 2022
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