Quote:
Originally Posted by New Englander
Did raising the interest rates control runaway inflation.?
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The FED is TRYING. They are trying their BEST as we speak. They may NOT succeed and the US could tumble into a dep RECESSION. Or just as possible what they are doing could keep the recession relatively mild. Historically, The Fed has ONLY been successful 8 out of 10 times. Why this dismal record? Some say that the FED is incompetent. Others say that the US economy is so BIG and diversified that the FED can NOT get a handle on it. The FED only big TOOL is to raise the interest rate, which is a 2 edged sword and will NOT satisfy hardly anyone - especially Seniors on FIXED incomes.
........Personally, I think that large-group psychology has a bigger effect than is generally realized. If people THINK that there is GOING to BE a recession, then likely there WILL be one ! It is like a "self-fulfilling prophesy" . !!!!!