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jiocrag04/03/20252 repliesview on HN

This is flat out wrong. The Fed raises and lowers interest rates to stimulate or tamp down demand. Raising interest rates because prices rise while demand drops due to a trade war would accomplish nothing.


Replies

frontfor04/03/2025

The Fed has two mandates: maximum employment & stable prices. If prices go up, the Fed is mandated to raise interest rate.

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rthomas604/03/2025

So you don't think employers will raise wages as the cost of food increases?

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