Inflation sets 40 year high

hey Coach, good to see you posting here. We need some new ideas over here. What’s your deal? Stocks, real estate, NFT’s? it’s pretty clear now that the Fed has to keep to its promise to move rates up to combat inflation. There is too much money in the economy and raising rates will suck it right out. the classic definition of inflation is too much money chasing too few goods but is that what’s happening? Another definition of inflation is, the same amount of money, chasing fewer goods. Supply chain issues? now here is the dilemma, if you raise rates to remove money from the economy and consumers pockets, while gas , food and housing is already sucking cash out on its own. recession. What a fawking dilemma. This happened in 2018 and the Fed ended up backtracking and reducing rates instead of raising them in 2019. Inflation is an economic killer, don’t forget that. Right now every commodity, lumber, nickel, you name it is sky high. GDP is going to stall as consumers are forced to scale back spending. The crash is getting nearer. As far as the housing market, a 25 bps increase in fed rates not mortgage rates is a done deal. a bigger announcement is will the Fed continue scaling back of its mortgage backed securities purchases. If they announce further drops in purchases, expect higher mortgage rates, more layoffs in mortgage companies which has already started as loan volumes trickle.