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Thursday, February 02, 2023

Commentary: The Unknown Impact of Inflation on Rural Americans

When the Federal Reserve convenes at the end of January 2023 to set interest rates, it will be guided by one key bit of data: the U.S. inflation rate. The problem is, that stat ignores a sizable chunk of the country – rural America.

2 comments:

  1. Since we already know the official rate is a fiction, What is the federal reserve going to base its action on? Hint: Increasing interest rates are another contributor to the inflation rate. Higher cost of borrowed money = higher price of what that money buys.

    -Generic

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  2. Actually, increasing interest rates only increases the cost of BORROWING MONEY; which most idiots do to buy crap that they don't need. High interest rates cool down consumer and corporate borrowing; less cash is borrowed, hence fewer items are purchased. This results in fewer people chasing after more available goods; which inevitably causes prices to stabilize/ drop. Just look at the current housing market in most states.

    Higher interest rates actually reward those of us who invest and don't live 180% beyond our yearly means; via higher yields on Bonds and other relatively stable investments. I have no sympathy for the idiots who took out an ARM @2.9% with 90%+ financing on their un-affordable house two years ago; and now their mortgage payment is shooting through the roof while the value of their house craters.

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