Does anyone care about the economy?

[doug rr]

[tragabigzanda]

Now we’re ducking talking:

Democrats introduce bill to give the Federal Reserve a new mission: Ending racial inequality
https://www.washingtonpost.com/business ... Fstory-ans

[Bi_3]

Now we’re ducking talking:

Democrats introduce bill to give the Federal Reserve a new mission: Ending racial inequality
https://www.washingtonpost.com/business ... Fstory-ans

The headline says equality, the bill says equity. Those are very different things.

[E.H. Ruddock]

Great now I'm horny

[4/5]

The Federal Reserve is making a massive policy shift today, replacing 'inflation targeting' with 'average inflation targeting.' Basically this signals that instead of shooting for 2% inflation (which has consistently been below target for a decade) they will now shoot for inflation above 2% for the foreseeable future to bring average inflation over the longer term up to 2%.

[tragabigzanda]

In English please

[4/5]

In English please

The Fed is promising more inflation, zero percent interest rates for a long, long time and that they won't raise them even when unemployment out output stabilize.

This is basically the inverse of what The Fed did under Paul Volker in 1980. In 1980 Volker announced the Fed's intention to bring inflation dramatically down, today the Fed is announcing the opposite. The reason is that many economists believe that if people/"the market" understand the Fed's intention AND BELIEVE THEM that it can make the adjustment much quicker than it would be otherwise. This worked very well for Volker, they rapidly brought inflation down. The hope here is the same but in the opposite direction.

Today is just talk. It's an extremely overt signal to everybody to expect inflation which should then lead to price and wage increases if people believe that there will in fact be inflation.

[Mickey]

It's about to get real inflated up in here.

[Strat]

How much longer am i going to be jammed as an appraiser though.

[Strat]

and when will my marcus goldman sachs savings account interest rate go back to 2% again

[4/5]

and when will my marcus goldman sachs savings account interest rate go back to 2% again

Nominally? It'll probably happen before too long if the Fed is successful. In real terms? A long, long, long time.

[Bi_3]

It's about to get real inflated up in here.

You elect people who run the country like it's the 60s you get the 70s.

[4/5]

The Fed is still paying interest on excess reserves, so I'm not sure if we should totally believe them yet.

[B]

[B]

[BurtReynolds]

Heh I don't think that's even Trump's call to make. Unless he plans on vetoing it. Like I said, Biden is leading a very charmed life.

[4/5]

That graph is hysterically misleading. That end of times looking crash is a decrease of 1%.

(It did fall on the day closer to 1.5% but still.)

Love the all caps about it falling to a session low. *ZOOM WAY IN ON A GRAPH TO MAKE IT LOOK DRAMATIC!!

[elliseamos]

That graph is hysterically misleading. That end of times looking crash is a decrease of 1%.

(It did fall on the day closer to 1.5% but still.)

Love the all caps about it falling to a session low. *ZOOM WAY IN ON A GRAPH TO MAKE IT LOOK DRAMATIC!!

Seems as though it got his attention (maybe not this graph, but the reaction).

[4/5]

It's tough to comprehend how stupid a person would have to be to surprised that the stock market would react badly to an announcement that there will be no spending package.

[Bi_3]

It's tough to comprehend how stupid a person would have to be to surprised that the stock market would react badly to an announcement that there will be no spending package.

Unless it has dawned on him that his tweets can predictably alter the stock market... which gives some in debt an interesting way out.