Wednesday, November 2, 2022

Fed keeps jacking rates, because God forbid that workers keep doing well.

So the Fed acted as expected today, raising the Fed Funds rate by 75 points. But that wasn't what people were looking for. Instead, they were looking for hints as to how many more rate hikes were left to come, and how high the Fed Funds rate would go.

Originally, the outlook seemed to be pretty good, as Fed Chair Jerome Powell finally seemed to be looking ahead to current and future conditions to guide policy, and admitted that jacking the Fed Funds rate to 4% was a big deal in itself.

The stock market jumped, seeing a leveling off of rate hikes coming in the near future, with the DOW Jones Industrial Average exceeding 33,000 at one point. And then Powell spoke to reporters after the Fed's decision was made.

And the result on Wall Street....

This is so dumb. Inflation was at a 2% annual rate in Q3 2022, and there is strong evidence of slowdowns in construction activity and housing prices starting to fall. So why keep on tightening at such a heavy pace?

Yeah, we can't have everyday Americans continuing to have money in their pocket and the country having more than 10 million job openings. That's terrible! We need to restore balance and allow the corporations that are making record profits have a better position to negotiate with the plebes!

It is infuriating. And it really tells you what the banksters fear most - workers with options. They'd rather wreck the economy than have everyday Americans actually gain ground on oligarchs like them.

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