How does the Central bank control inflation?
You may have heard in the news in the last year, that the Fed has been raising the interest rate. In this post, I will… Read More »How does the Central bank control inflation?
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The latest inflation report is out! What to expect next from the Fed?
The bureau of labor statistics (BLS) just released the inflation number for January 2023 for the United States.
There is a 0.5% increase from the December number, and inflation sits at still a whooping high of 6.4% over the last 12 months from January 2022.
How does people’s expectation about inflation affect the actual inflation?
What people like you and me think about inflation directly impacts the actual inflation rate. So, if we think inflation will be high in the… Read More »How does people’s expectation about inflation affect the actual inflation?
Did inflation fall to 0% in the US in July?
Yesterday, in the news, I read President Biden saying the US had 0% inflation in July. The BLS, the official source of inflation numbers, reported… Read More »Did inflation fall to 0% in the US in July?
Why did Fed raise interest rates again, making borrowing more expensive?
The Fed decided to raise the target range for the federal funds rate from 2.25% to 2.5%.
Inflation is usually driven by strong consumer demand, which is not matched by the supply. Supply bottlenecks with China during the Covid pandemic, Ukraine war, etc have all contributed to a weaker supply of many essential items we use every day. Since many of the supply chain issues can’t be fixed in short term, the Fed is trying to govern the demand aspect of the inflation. By raising interest rates, and making borrowing more expensive, the Fed is hoping to weaken Americans’ willingness to spend money and ultimately bring inflation to its 2% target level.
What are our real earnings when we deposit money in our savings accounts?
If I asked, “What’s the interest on your savings account?” many of you will tell me the interest rate that the bank is stating. However,… Read More »What are our real earnings when we deposit money in our savings accounts?
Gas prices are too high, but why?
Both gasoline and diesel prices are still up. Drivers across the US and globally are feeling pain when they visit gas stations to pump gas.… Read More »Gas prices are too high, but why?
What is causing the prices to rise the world over? Understanding inflation and its causes
The most talked-about topic affecting everyone for now almost a year is inflation. Your money loses its purchasing power, you need more money to buy… Read More »What is causing the prices to rise the world over? Understanding inflation and its causes
