[Hin]

So if there is inflation, the Fed raises interest rates to fight it. If there is a recession, the Fed lowers interest rates to stimulate the economy.

What happens when there is a inflation during a recession?

[Jean]

I’ll never understand why people think republicans are better for the economy 9 of the last 10 recessions are under republican presidents.

I guess they can afford to hold money and buy cheap when everything falls while the rest of us suffer.

It seems to be intentional

[Maricela]

The fed is not worried about lowering interest right now. But two quarter points are anticipated before the years out.

Ok Powell is focusing on seeing the unemployment numbers don’t increase because of it does it will check off the third line.

necessary for stagflation which is worse than inflation. We last went through stagflation in the 70s.

Factors were Vietnam war, oil embargoes and declining manufacturing jobs.

Which closely resembles what is going on now. Hold on tight and stay focused. Gold is at a new record high.

[Amber]

Speculation, but we all know empires rise and empires fall, and right now we have “new money” fighting “old money”.

During times like this you just have to get more frugal, spread out your investments a little differently (I still invest in VTSAX but have been upping my HYSA a bit more than usual), ride the waves…..

[Jill]

What happens? We get poorer every day we are alive. Solution?

Get rid of the people who are causing the problems.

[Ian]

Stagflation.
Pain.
We get less wealthy no matter what we do.

[Michael]

That’s called stagflation.
Very bad, buckle up if we get there because it’s going to be turbulent

[Paul]

In a recession, inflation should slow since less people buying. If it increases (say from a trade war during the recessionary period) than we get into a nasty situation called stagflation.

And maybe the recession is more like depression.

Also, recessions are called 6mo or so after they happen because the jobs and GDP data lags.

It’s entirely possible we are currently in a recession and a trade war

[Author]

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