Funny Political Picture Thread

[rogue06]

[rogue06]

[rogue06]

[rogue06]

[rogue06]

[rogue06]

[rogue06]

[rogue06]

One for Starlight when he tells us how well Bidenomix is working

[Starlight]

One for Starlight when he tells us how well Bidenomix is working

Do you understand that the Fed generally raises interest rates when the economy is doing well to stop it "overheating", and brings them down when it is doing badly to "stimulate growth"?

Investopedia:
Central banks often change their target interest rates in response to economic activity: raising rates when the economy is overly strong and lowering rates when the economy is sluggish.

"Oh no, the interest rates are high, that's the mark of an... ~checks notes~ ..."overly strong" economy"

[Sparko]

Do you understand that the Fed generally raises interest rates when the economy is doing well to stop it "overheating", and brings them down when it is doing badly to "stimulate growth"?

Investopedia:
Central banks often change their target interest rates in response to economic activity: raising rates when the economy is overly strong and lowering rates when the economy is sluggish.

"Oh no, the interest rates are high, that's the mark of an... ~checks notes~ ..."overly strong" economy"

That is an oversimplification. They raise rates to stop inflation. The increased rates will cause buying to slow down and then "hopefully" prices will come back down in order to get people to buy again. The problem isn't a strong economy, but an economy where inflation has gotten out of control.

From your own source:

The interest rate that impacts the stock market is the federal funds rate. The federal funds rate is the interest rate that depository institutions—banks, savings and loans, and credit unions—charge each other for overnight loans (whereas the discount rate is the interest rate that Federal Reserve Banks charge when they make collateralized loans—usually overnight—to depository institutions).3

The Federal Reserve influences the federal funds rate in order to control inflation. By increasing the federal funds rate, the Federal Reserve is effectively attempting to shrink the supply of money available for making purchases.

This, in turn, makes money more expensive to obtain. Conversely, when the Federal Reserve decreases the federal funds rate, it increases the money supply. This encourages spending by making it cheaper to borrow. The central banks of other countries follow similar patterns.

[rogue06]

Do you understand that the Fed generally raises interest rates when the economy is doing well to stop it "overheating", and brings them down when it is doing badly to "stimulate growth"?

Investopedia:
Central banks often change their target interest rates in response to economic activity: raising rates when the economy is overly strong and lowering rates when the economy is sluggish.

"Oh no, the interest rates are high, that's the mark of an... ~checks notes~ ..."overly strong" economy"

In this case it was due to Bidenflation -- hardly the sign of a healthy economy.

[rogue06]

Duh...

[rogue06]

[rogue06]

[rogue06]