Why 2% Is the Fed’s Magic Inflation Number | WSJ

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  • เผยแพร่เมื่อ 17 ม.ค. 2025

ความคิดเห็น • 202

  • @jerrycampbell-ut9yf
    @jerrycampbell-ut9yf 4 หลายเดือนก่อน +630

    Interesting how over 2% inflation has been a concern when central banks and the Fed begin to hike interest rates. I consider the rising interest rate to be a very serious issue since it will undoubtedly cause more investors to withdraw their money from the stock market. But then I'm still aware of certain investors that continue to earn over $365,000. Wish I could accomplish that.

    • @larrypaul-cw9nk
      @larrypaul-cw9nk 4 หลายเดือนก่อน +3

      Very possible! Particularly in the current market. There are several opportunities to generate excellent returns, but such intricate transactions can only be carried out by seasoned market professionals.

    • @Peterl4290
      @Peterl4290 4 หลายเดือนก่อน +2

      AGREED! Over 3 years now, I've made over 1.7 million by simply following a coach's advice. I was on the sidelines for a while watching, trying to determine the best time to get in, before I came across a coach, recommended by my wife. I was reluctant at first but I went ahead and contacted the coach. Best decision yet

    • @sabastinenoah
      @sabastinenoah 4 หลายเดือนก่อน +1

      This sounds interesting. My portfolio is in the red. Can you recommend your analyst, please?

    • @Peterl4290
      @Peterl4290 4 หลายเดือนก่อน +1

      Annette Christine Conte is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

    • @sabastinenoah
      @sabastinenoah 4 หลายเดือนก่อน +1

      Interesting. I am on her site doing my due diligence. She seems proficient. I wrote her an email and scheduled a phone call.

  • @NicholasBall130
    @NicholasBall130 10 หลายเดือนก่อน +703

    The system is failing as a result of both government and federal policy. In the next days, the banking crisis would have to be epic and gigantic for the FED to decide not to raise interest rates. This won't happen; an increase and a crash are coming. There will be more negative portfolios this 2nd half of 2024 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?Read more

    • @StacieBMui
      @StacieBMui 10 หลายเดือนก่อน +1

      Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder

    • @EleanorBaker474
      @EleanorBaker474 10 หลายเดือนก่อน

      Yes, I have been in touch with a CFP ever since the outbreak. Today, investing in hot stocks is quite easy; the difficult part is deciding when to buy and sell. With an initial starting reserve of $80k, my adviser chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.

    • @StocksWolf752
      @StocksWolf752 10 หลายเดือนก่อน

      How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?.

    • @EleanorBaker474
      @EleanorBaker474 10 หลายเดือนก่อน

      Sonya lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

    • @Greggsberdard
      @Greggsberdard 10 หลายเดือนก่อน +1

      thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

  • @Raymondjohn2
    @Raymondjohn2 ปีที่แล้ว +772

    Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.

    • @Oly_laura
      @Oly_laura ปีที่แล้ว +4

      My main concern now is how can we generate more revenue during quantitative times? I can't afford to see my savings crumble to dust.

    • @martingiavarini
      @martingiavarini ปีที่แล้ว +3

      It's a delicate season now, so you can do little or nothing on your own. Hence I’ll suggest you get yourself a financial expert that can provide you with valuable financial information and assistance

    • @lipglosskitten2610
      @lipglosskitten2610 ปีที่แล้ว +2

      I agree, my profit has been consistent no matter the market situation, I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2020 this time with guidance from an investment adviser that was recommended by a popular economist on a subreddit, long story short, its been 2years now and I’ve gained over $850k following guidance from my investment adviser.

    • @Oly_laura
      @Oly_laura ปีที่แล้ว +2

      @@lipglosskitten2610 How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings?

    • @lipglosskitten2610
      @lipglosskitten2610 ปีที่แล้ว +2

      @@Oly_laura My consultant is ‘’Christine Jane Mclean’’ I found her on a CNBC interview where she was featured and reached out to her afterwards. She has since provide entry and exit points on the securities I focus on. You can look her up online if you care supervision. I basically follow her trade pattern and haven't regretted doing so.

  • @johnben9
    @johnben9 11 หลายเดือนก่อน +345

    Economists and business leaders are voicing concerns at the start of 2023 that the year could be a difficult one. JPMorgan Chase & Co. Chief Executive Jamie Dimon said that the Federal Reserve may need to raise interest rates to 6% to fight inflation, higher than the peak level between 5% and 5.5% in 2023 that most Fed officials penciled in after their December meeting. Although I read an article of people that grossed profits up to $500k during this crash, what are the best stocks to buy/short now or put on a watchlist.

    • @suzannehenderson5
      @suzannehenderson5 11 หลายเดือนก่อน +4

      Emotionally-charged decisions to sell off large quantities of stocks or other investments now lock in your losses, removing any chance for future growth.

    • @emiliabucks33
      @emiliabucks33 11 หลายเดือนก่อน +3

      Very correct; the bear market has contributed significantly to the growth of my investment. I was able to quickly increase my portfolio from $180K to $272K. Essentially, I was just doing as my financial advisor instructed. You're good to go as long as you get competent assistance.

    • @frankbarnes22
      @frankbarnes22 11 หลายเดือนก่อน +3

      Would it be okay if I asked you to recommend this specific advisor or company that you used their services? Seems you've figured it all out.

    • @emiliabucks33
      @emiliabucks33 11 หลายเดือนก่อน +3

      Carol Vivian Constable is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

    • @frankbarnes22
      @frankbarnes22 11 หลายเดือนก่อน +2

      Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance

  • @allensu9363
    @allensu9363 ปีที่แล้ว +30

    When I learned about the 2% target in AP Econ I assumed that was policy in the 1960s or something. Very surprised it started in 2012

  • @Riggsnic_co
    @Riggsnic_co 4 หลายเดือนก่อน +395

    The only American who won't acknowledge this Administration's failed economic policies is Joe Biden. "Shrink-flation' is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that?

    • @Jamessmith-12
      @Jamessmith-12 4 หลายเดือนก่อน +3

      I would avoid index funds, mutual funds, and specific stocks for the time being. Right now, the best option is a fixed income of five percent. Put money aside for the times when the market really starts to bounce back.

    • @JacquelinePerrira
      @JacquelinePerrira 4 หลายเดือนก่อน +2

      45% of Americans do not invest in the stock market because of lack of guidance. Every year you don't invest, you are falling behind. I’m hitting numbers in the stock market I used to dream of… Going from $50k to $600k in my portfolio is surreal all thanks to insights from my financial advisor.

    • @kevinmarten
      @kevinmarten 4 หลายเดือนก่อน +2

      Your adviser must be really good, I hope it's okay to inquire if you're still collaborating with the same adviser and how I can get in touch with them?

    • @JacquelinePerrira
      @JacquelinePerrira 4 หลายเดือนก่อน +1

      Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

    • @kevinmarten
      @kevinmarten 4 หลายเดือนก่อน +2

      I just googled her and I'm really impressed with her credentials; I reached out to her since l need all the assistance l can get. I just scheduled a caII.

  • @blaquopaque
    @blaquopaque ปีที่แล้ว +262

    FED: We need people unemployed and bankrupt to calm inflation.. 2 days later SVB goes under FED: Wait, not THOSE people, only poor and middle class can fail in this economy, as usual.... Well given the global economic crisis we are currently experiencing Investing in alternative income streams that are independent of the government should be the top priority for everyone right now.. A variety of stocks and digital currencies are still attractive investments right now.

    • @shirleneunglesbee1423
      @shirleneunglesbee1423 ปีที่แล้ว +2

      Hahah....High moving stocks are not the path to big profits. It is the management of risk in relation to reward. Putting on the appropriate size and twisting your edge as many times as necessary to achieve your aim. That applies to everything from long-term investing to day trading.

    • @smithmurphy
      @smithmurphy ปีที่แล้ว +3

      @@shirleneunglesbee1423 I agree that my profit has been fairly consistent, regardless of market conditions. I started investing in early 2020, but the persistent downtrends and losses discouraged me. I sold off, and I later re-invested in December 2021, this time with advice from a portfolio adviser who had been praised by a well-known economist on a subreddit. To make a long story short, it's been two years, and I've made over $850k by following her advice.

    • @gagnepaingilly
      @gagnepaingilly ปีที่แล้ว +1

      @@smithmurphy The news I've been seeing in the market hasn't been very positive, so I've really been looking at advisors lately. What individual is directing you?

    • @smithmurphy
      @smithmurphy ปีที่แล้ว +5

      @@gagnepaingilly The versatile and knowledgeable JILL MARIE CARROLL can meet your unique requirements. You are free to look her up and make use of her.

    • @gagnepaingilly
      @gagnepaingilly ปีที่แล้ว +1

      @@smithmurphy Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

  • @shellylofgren
    @shellylofgren ปีที่แล้ว +413

    inflation can be pursued only so long as the public still does not believe it will continue. once the people generally realized that the inflation will be continued on and on and that the value of the monetary until will decline more and more , then the fate of the money is sealed .only the belief , that the inflation will come to a stop , maintain the value of the notes ? however, I believe that this fluctuation a simple part of the journey towards mainstream adoption and eventual stabilization. I think it's more likely for BTC, ETH, XRP to retest the resistance to the upside and then remove lower

    • @ilyaveysman.
      @ilyaveysman. ปีที่แล้ว +3

      Accumulating losses when trading alone can lead to psychological anxiety. Bitcoin is moving crazy this few days but if you are smart then you should know the best thing to do is to involve in trading especially with the right guidance

    • @Jaffcardwell
      @Jaffcardwell ปีที่แล้ว +3

      Since I have a variety of jobs, I don't have a particular fund that I invest in. I don't act like that at all. I take cues from seasoned financial advisor ‘‘JULIE ANNE HOOVER’’, who is registered with the US Securities and Exchange Commission, in how I conduct myself (SEC). Since then, in contrast to the IRA's slow growth, my returns have increased quickly. What I have is used just by her trades, not by a small number of highly specialized companies.

    • @AbdoolLogodesign
      @AbdoolLogodesign ปีที่แล้ว +3

      @@Jaffcardwell I will be glad to enlist the services of a reputable one? How do I go about finding and vetting them. We know the value of a fiduciary as we have a family lawyer and he has hinted on it occasionally, so we began to consider the idea.

    • @Jaffcardwell
      @Jaffcardwell ปีที่แล้ว +3

      Julie Anne Hoover maintains an online presence that can be easily found through a simple search of her name on the internet.

    • @AbdoolLogodesign
      @AbdoolLogodesign ปีที่แล้ว +2

      @@Jaffcardwell I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Julie up and send her a message. You've truly motivated me. God's blessings on you.

  • @tungnguyenthanh26799
    @tungnguyenthanh26799 ปีที่แล้ว +2

    thank you WSJ

  • @JasvirAher
    @JasvirAher 9 วันที่ผ่านมา +811

    As an investment enthusiast, I often wonder how top-level investors are able to become millionaires through investing. I have a significant amount of capital to start with, but I'm unsure about the strategies and direct I should take to help me generate substantial profits like some people are this season

    • @VicoYuni
      @VicoYuni 9 วันที่ผ่านมา

      I’m not in a position to offer financial advice, but given the significant amount of capital you're working with, it would be wise to consult a financial advisor who can guide you in developing a strategy tailored to your goals and risk tolerance.

    • @AmeenJohani
      @AmeenJohani 9 วันที่ผ่านมา

      @@VicoYuni Factos!!. After experiencing a major portfolio loss in 2020 amid the COVID pandemic while trying to manage my investments on my own, I reached out to an investment advisor. They helped me turn my $420k into a seven-figure portfolio by providing the guidance and strategy I needed. Having that expertise made a significant difference in my investment journey.

    • @ChiharuBulquerin
      @ChiharuBulquerin 9 วันที่ผ่านมา

      Thanks for sharing your experience! I’ve been managing my portfolio myself, but it’s not working out. Do you have any recommendations for a good investment advisor? I could really use some help.

    • @AmeenJohani
      @AmeenJohani 9 วันที่ผ่านมา

      @@ChiharuBulquerin Elizabeth cordle gross a highly respected figure in his field. I suggest delving deeper into his credentials, as he possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

    • @ZeeshanDevraj
      @ZeeshanDevraj 9 วันที่ผ่านมา

      Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!

  • @salvadorcarbajal
    @salvadorcarbajal ปีที่แล้ว +20

    Mrs Christina the bitcoin trader is legit and her method works like magic I keep on earning every single week with her new strategy

    • @mahirdikmen
      @mahirdikmen ปีที่แล้ว

      I'm glad to see Christina mentioned here, my spouse recommended her to Me after investing $4000 and she has really helped us financially in times of COVID - 19 lock down here in Australia 🇦🇺

    • @julioalmeida-2474
      @julioalmeida-2474 ปีที่แล้ว

      Thanks for the recommendation
      I just contacted her and she attends to me nicely ❤️

    • @luigivitali1020
      @luigivitali1020 ปีที่แล้ว

      She’s technical analysis is dope and her interpretation/projections of the market is so accurate I sometimes ask myself if he is human haha. Point is, marueen is the perfect trader to follow for advise and daily signals

    • @valentindoring
      @valentindoring ปีที่แล้ว

      She's the key to crypto
      She really made name for herself

    • @fredrikwigren
      @fredrikwigren ปีที่แล้ว

      My first experience with her gave me the assurance that has made me to invest without fear of loosing

  • @ああ-p5k4v
    @ああ-p5k4v ปีที่แล้ว +7

    I don't know much about it, but I've heard that the US government's vigorous fiscal stimulus has increased the inflationary trend, and that the central bank needs to raise interest rates in order to control inflation.
    It is ironic that the central bank is the only one to get the hate, while the government is more responsible for inflation.

    • @lahabitaciondelatrapado4621
      @lahabitaciondelatrapado4621 ปีที่แล้ว +1

      The fiscal stimulus of the government was only possible thanks to the central bank.
      They are supposed to be independent institutions, but in reality they work in tandem.
      Just the idea of printing money is a crime against property

    • @kaymish6178
      @kaymish6178 ปีที่แล้ว

      @@lahabitaciondelatrapado4621 What are you on buddy? Printing money just increases the price of hard assets like prooerty.

    • @NicEeEe843
      @NicEeEe843 ปีที่แล้ว

      Most countries were printing lots of money to keep the economy held up back then. At some point it had to fall we just chose it to happen later instead of back then, and now it’s happening. It wasn’t just the US, every country was over printing

    • @ああ-p5k4v
      @ああ-p5k4v ปีที่แล้ว

      >What are you on buddy?
      Well, that's great. We should have a miracle beyond Zimbabwe with you at the head of the state.

  • @David-pd8yr
    @David-pd8yr ปีที่แล้ว

    Great video.

  • @YorickReturns
    @YorickReturns ปีที่แล้ว +8

    Lol at the propaganda against "deflation". Just ignore the real world, where people need to buy food (even if it's going to be cheaper next week), and where people line up to pay top dollar for the newest videogame machine. WSJ is parroting the statist line.

  • @daveSoupy
    @daveSoupy ปีที่แล้ว +13

    after listening to a few different podcasts talk about inflation 2% is a really good target. only having a 10% premium difference over the course of 5 year isn't bad especially compared to 6 to 7% year over year.

    • @BasEkKafir
      @BasEkKafir ปีที่แล้ว +3

      2% compounded over 5 years will be close to 12-13% but still quite good.

    • @dan7446
      @dan7446 ปีที่แล้ว +4

      @@BasEkKafir No, it's 10.4% (1.02^5) over 5 years.

  • @johnbeckwith8313
    @johnbeckwith8313 ปีที่แล้ว +9

    The real key to stopping inflation is for Congress to stop the deficit spending.
    America needs a Balanced Budget Amendment added to the Constitution.

    • @YorickReturns
      @YorickReturns ปีที่แล้ว +4

      That's not going to happen, unless the American people embrace the free market, and to do that they need to embrace rational self-interest.

    • @iBuyBitcoin
      @iBuyBitcoin ปีที่แล้ว

      buy bitcoin

    • @124085
      @124085 ปีที่แล้ว

      You want to stop inflation and balance the budget?
      Sounds like a recipe for higher taxes.

  • @rcdriver107
    @rcdriver107 ปีที่แล้ว +12

    The real inflation is always at 15% or a lot more......

    • @jtgd
      @jtgd ปีที่แล้ว +2

      Really annoyed me when people were calling 7% “Hyperinflation”
      Like consumption was harder due to rises in price, but hyperinflation sounds like hyperbole. We’ve experienced similar numbers throughout the years, but we didn’t even hit double digits.
      Some countries have been in double digits for a while. Others are in the hundreds of percent.
      Our market is more stable, but many regions, including developed ones would love 5-6% inflation right now, rather than 15% or 300%

  • @wc4109
    @wc4109 ปีที่แล้ว +1

    I find Cental Bank's problem with fighting inflation, by raising interest rates so rapidly in 2022-3, has led to increased foreclosures and worse, run on banks (SVB) as we've seen now... the Fed needs to be gentle in fighting inflation, not haphazardly like there's no tomorrow....

  • @TelusJadetester
    @TelusJadetester ปีที่แล้ว +10

    I love how this video pushes the notion that the federal reserve is the good people rather than an entity that isn't always for the people... Most of the data used from the federal reserve isn't always connected to the people directly and inflation is one of them.

    • @124085
      @124085 ปีที่แล้ว +2

      "Isn't always for the people" is being *extremely* generous. If you've ever had to work a job in your life (for a company that you didn't own). Or depend on income to pay your bills the Federal Reserve is your sworn enemy.

    • @BTrain-is8ch
      @BTrain-is8ch ปีที่แล้ว

      An inflationary target is an incentive to keep money moving through the system. It punishes inefficient uses of limited resources. "The people" need to understand that what some people may want, like children who want ice cream for breakfast, isn't necessarily good for them.

    • @124085
      @124085 ปีที่แล้ว +1

      @@BTrain-is8ch The Federal Reserve and its consequences have been disastrous for mankind.

    • @BTrain-is8ch
      @BTrain-is8ch ปีที่แล้ว

      @@124085 Uncomfortable truth: Gold has no universal intrinsic value and therefore currency backed by gold is no more valuable than currency backed by hopes and dreams.
      The thing that makes currency work is the state saying you MUST accept it to settle a debt. All the fed has done is give the federal government some levers to pull to try and mitigate lean times in the business cycle.

    • @124085
      @124085 ปีที่แล้ว

      @@BTrain-is8ch The Alphabet agents glow brighter every year.

  • @sureshnishtala2887
    @sureshnishtala2887 ปีที่แล้ว

    Fed Chair Jerome Powell once said about why Target Inflation is 2% and not some other number and he went on to say that its the "PCE index" which sets the standard to 2% so we would want to acheive that

  • @dimasrahardja
    @dimasrahardja ปีที่แล้ว +6

    The FED knows. They aren't committed to attacking inflation. They are going to continue to inflate, stocks and commodities will continue to go up with everything else. You can't just sit on cash waiting for a crash, get your money working for you, start buying in slowly and then gradually increase the pace of buying as the prices continue to drop.

  • @_el.guapo_
    @_el.guapo_ ปีที่แล้ว +1

    Can somebody explain why we had had such good inflation rates for 11 years (between 2009 and 2020) while QE was increasing (from $1.5T to 4T$) ? Wouldn't more QE mean higher inflation ?

  • @anthonyrussell5718
    @anthonyrussell5718 ปีที่แล้ว +5

    FED's focus is not on combating inflation. Stocks and commodities will continue to rise along with everything else as they continue to swell. You can't just sit on cash and wait for a fall; you need to put your money to work, start investing gently, and then pick up the speed of investing as the price of your investments drops.

    • @louisairvin3052
      @louisairvin3052 ปีที่แล้ว +3

      Market is down still, I've been looking up strategies and apparently both bull and bear market condition provides equal avenue to accrue massive gains, I mean I've heard of people making up to $300k during this crash and I'd like to know how.

    • @svengrot7943
      @svengrot7943 ปีที่แล้ว +1

      @melindrevaughn I'll suggest you create a diversification strategy because building a good financial-portfolio has been more complex since covid. Recently my colleague advised me to hire an advisor, surprisingly I have accrued over $120K under the guidance of my coach during this crash. She figured out Defensive strategies to protect my portfolio and make profit from this roller coaster market.

    • @amatvkhmer
      @amatvkhmer ปีที่แล้ว

      Why 2% do not understand, please tell me

    • @sriig
      @sriig ปีที่แล้ว

      he isn't going to answer your question. He's a bot.@@amatvkhmer

  • @amatvkhmer
    @amatvkhmer ปีที่แล้ว

    Why 2% do not understand, please tell me

  • @sweeseen9577
    @sweeseen9577 ปีที่แล้ว

    I'm not sure about the target set is effective or not. The place where i stay, the price of goods never go down except fuel prices…

  • @dracorpgroup
    @dracorpgroup ปีที่แล้ว

    Inflation is based on the overspending by government. Instead of taxes equaling spending the government overspends; the extra spending is supported by debt, every year. This ends up devaluing the dollar over time.
    That is why a house bought in 1971 for, let's say, $10,000. would sell in 2021 for $300,000. It is the same house! The dollar in that period has been devalued so that it is now worth $0.03 referring to the 1971 dollar, roughly. The dollar has been devalued by a facto of thirty times.
    Salaries are hopelessly behind the curve. It is not prices; it is government.

  • @gold_real_money
    @gold_real_money ปีที่แล้ว

    It's not about 2% target rates, it's all about getting easier to pay their debt

  • @redteam9881
    @redteam9881 ปีที่แล้ว +1

    Never again 2% who are they kidding ?

  • @truthkeeperfilms
    @truthkeeperfilms ปีที่แล้ว

    A target they’ll never reach. 14 YEARS of Quantitative Easing at 0% interest won’t go away. More tightening will collapse finances and a pivot will cause rampant inflation. It’s a no win situation. Period.

  • @jaad9848
    @jaad9848 7 หลายเดือนก่อน

    The inflation number should be pegged to actual needs like housing and food. I am pretty sure the Fed is completely missing their 2% target and just being balanced out by cheaper goods that arent needed for annual purchases like phones/refridgerators/cars

  • @Jimwenten
    @Jimwenten ปีที่แล้ว +1

    if everyone quit spending that would help. So many people have too much money.

    • @uraddiictOnx3
      @uraddiictOnx3 ปีที่แล้ว

      who? the average American has "too much money"?

    • @Jimwenten
      @Jimwenten ปีที่แล้ว

      @@uraddiictOnx3 Learn how to live without money your ancestors knew how. People think they need money to live not true. Learn how to live without money.

  • @nala3038
    @nala3038 8 หลายเดือนก่อน

    Let's not make the mistake of thinking that if the inflation rate was to drop to 2% prices would drop...they will still go up but at the slower rate!
    Inflation rate is just like a car speedometer.

  • @CommeradeZhukov
    @CommeradeZhukov ปีที่แล้ว +6

    If someone tells me they're deliberately trying to take 2 percent of my money every year I'd dump it for something else immediately, oh wait I did that years ago 😆

    • @kjncommenter216
      @kjncommenter216 ปีที่แล้ว +4

      Congrats on proving their point

    • @stachowi
      @stachowi ปีที่แล้ว +1

      holding cash has a cost because you don't own your money, you just use it.

  • @Octovisuals
    @Octovisuals ปีที่แล้ว

    Thanks, easy and simple explanation, but you know what? Nobody needs to regulate inflation, not politicians nor central banks. In fact, they shouldn't exist. Markets, that is people, just do everything themselves, always. No inflation without printing, folks.

  • @writerme
    @writerme ปีที่แล้ว

    I think the percent inflation target should be 3; it is a Magic Number, afterall.

  • @MnMPryoBanana
    @MnMPryoBanana ปีที่แล้ว

    Basically by reducing inflation, we may become poorer in the short term but richer in the long term

    • @NicEeEe843
      @NicEeEe843 ปีที่แล้ว

      But that’s not what’s gonna happen. They’re gonna make us poor now and poorer later 😂

  • @19MAD95
    @19MAD95 ปีที่แล้ว +1

    Why not 3% that’s easier to manage

  • @neriofrio
    @neriofrio ปีที่แล้ว +1

    WSJ is so bias. It would be good to see WSJ explaining how the historical increase in the interest rate is damaging the banking system, which is why Muddys downgraded it from stable to negative. Why don't you do a video about that?

  • @feng443
    @feng443 ปีที่แล้ว +4

    My car insuarance and gome insurance and medical insurance all increase far more tha 2 percent. More like 10 percent

    • @stachowi
      @stachowi ปีที่แล้ว

      more than that.

    • @Jimwenten
      @Jimwenten ปีที่แล้ว

      @@stachowi my truck insurance went up $2

  • @100perdido
    @100perdido ปีที่แล้ว +3

    If they get it to 2% and it drops lower they will go back to quantitative easing again and the whole stock and real estat bubble can start over. A one bedroom condo will cost $2,000,000.

    • @NicEeEe843
      @NicEeEe843 ปีที่แล้ว

      Will? You mean already costs that much

  • @tatertot6758
    @tatertot6758 ปีที่แล้ว

    I always think about this when I buy 2% Milk

  • @w2385-i2s
    @w2385-i2s ปีที่แล้ว +1

    Just stop printing money.

  • @richarddecker9515
    @richarddecker9515 ปีที่แล้ว

    2 percent is also NATO countries GDP spending target. 2 percentage adds up a lot

  • @rexo2993
    @rexo2993 ปีที่แล้ว +1

    2% lol

  • @richarddecker9515
    @richarddecker9515 ปีที่แล้ว

    Military budget

  • @oas8766
    @oas8766 ปีที่แล้ว

    END THE FED

  • @fetteecke
    @fetteecke ปีที่แล้ว +1

    If the fed would stop artificial interest rates a normal healthy rate would be established through the market. People always have a positive time preference. The deflation death is myth, that is not true. Inflation is bad, when caused through expanding money supply. Learn austrian economics

    • @YorickReturns
      @YorickReturns ปีที่แล้ว +3

      WSJ is just propaganda.

    • @fetteecke
      @fetteecke ปีที่แล้ว +2

      @@YorickReturns i honestly think that most wsj journalists are just clueless and believe the lies they were told

  • @auro1986
    @auro1986 ปีที่แล้ว +2

    i will explain. this fed plays game with your life by shooting darts with an miss of 2%. other 98% is always recession for all

  • @vidan3018
    @vidan3018 ชั่วโมงที่ผ่านมา

    when a medium, especially o TH-cam, claims that "not everypne agrees" then it is clear this channel is the one that does not agree but tries not to say it for pretending to be journalistic. 2% was great target, the inflation rate went down (see the date from a year ago) and we now will get to experience the incorrect choice of these sources. Inflation might also rise with that. Just saying.

  • @alphar9539
    @alphar9539 ปีที่แล้ว

    6% now

  • @thiiosaki
    @thiiosaki ปีที่แล้ว +10

    lies, lies, and more lies. Lower prices dont stop people of buying things.

    • @forgottenautos8461
      @forgottenautos8461 ปีที่แล้ว

      you're right. typically lower prices allow people to buy more things.

    • @louistran016
      @louistran016 ปีที่แล้ว +2

      there are elastic and inelastic demands, gas vs $1000 jacket, food vs an oversea vacation. please educate yourself first

    • @CHMichael
      @CHMichael ปีที่แล้ว +1

      Strangely enough it seems like people buy more when prices go up.
      The real-estate run towards the end of covid and the car bubble made some people rush into buying them.
      Very strange

    • @ZayTson
      @ZayTson ปีที่แล้ว +6

      Overall I'd say you're correct but on occasion it does. For example, when the average person notices that the price of that thing is steadily going down (like houses during a correction/crash, think 2008-2010) they refuse to buy because "it'll just keep dropping". The opposite is also true, people pile into buying things when they notice it going up steadily (like houses during a bull run/run up, think 2020-2022) thinking "this will just keep going higher".

    • @iBuyBitcoin
      @iBuyBitcoin ปีที่แล้ว

      buy bitcoin

  • @Atipat12
    @Atipat12 ปีที่แล้ว

    A Collapse Of Mafia Fed 🔥🔥🔥🔥🔥🔥🔥🔥

  • @fetteecke
    @fetteecke ปีที่แล้ว +1

    The explanation why inflation is good for the people is so complex because everyone with common sense knows that devaluing their on money on purpose is bad. Buy Bitcoin

  • @Ryan-or7xm
    @Ryan-or7xm ปีที่แล้ว

    All I got from this video is that they have no idea what they are doing.

  • @AnnaKrueger809
    @AnnaKrueger809 ปีที่แล้ว +56

    I began accumulating wealth when I started following up my investment properly, The value of expert mentorship cannot be overstated. Without proper mentoring, people tend to make mistakes and loose money. This is why I prefer to invest with Juliann Hart because her methods are unique and extremely profitable-

    • @SierraLeighanne
      @SierraLeighanne ปีที่แล้ว

      Overtime I have come across people earning consistent returns with the assistance of a professional manager but how do I find one? This is something that piques my interest-

    • @Bradleyschaeffer376
      @Bradleyschaeffer376 ปีที่แล้ว

      I invest with Juliann Hart. She's the best when it comes to making gains in the financial market she's well accredited and proficient to help beginners through managing your investments-

    • @GaryWinstonBrown
      @GaryWinstonBrown ปีที่แล้ว

      Her investing strategy and risk management is well structured. She also offer copytrading

    • @AnnaKrueger809
      @AnnaKrueger809 ปีที่แล้ว

    • @AnnaKrueger809
      @AnnaKrueger809 ปีที่แล้ว

      Juliannhartt

  • @drmode
    @drmode ปีที่แล้ว +1

    Should be 0%

  • @stachowi
    @stachowi ปีที่แล้ว

    Bank bailouts: hold my beer

  • @theoderic_l
    @theoderic_l ปีที่แล้ว

    Lots of economists in this comment section

  • @TheWeatherLegend
    @TheWeatherLegend ปีที่แล้ว +1

    In violent times
    You shouldn't have to sell your soul
    In black and white
    They really, really ought to know
    Shout
    Shout
    Let it all out
    These are the things I can do without
    Come on
    I'm talking to you
    Come on
    Shout
    Shout
    Let it all out
    These are the things I can do without
    Come on
    I'm talking to you
    Come on

  • @ropro9817
    @ropro9817 ปีที่แล้ว +3

    Can someone (WSJ?) explain to me why interest rates are the only lever used by the government to steer the economy? Seems like a really blunt instrument, like doing brain surgery with a rusty axe. Note, I don't know jack about economics!

    • @tonysoviet3692
      @tonysoviet3692 ปีที่แล้ว +2

      It's like that on purpose so to make the message clear. In reality the Fed uses a lot of tools like quantitative easing/tightening, discount windows borrowing for banks, fiscal coordination with the Treasury... The Fed just publicly emphasizes interest rate (repo rate) because it's straightforward to understand and minimize miscommunication.

    • @YorickReturns
      @YorickReturns ปีที่แล้ว +1

      Because most US politicians and commentators are rational enough to accept that outright socialism doesn't work, but they won't fully accept the reality that any government intervention distorts the economy, hence the bizarre attitude even from a "right-wing" organization like WSJ that the government has a proper role in dictating interest rates.

    • @fetteecke
      @fetteecke ปีที่แล้ว +2

      Okay i will try to do a quick summary: there are two ways for the central bank to steer the economy. Change interest rates or change the money supply. Changing interest rates indirectly changes the money supply so basically both options are about the same. The thing people need to understand is that all major crashs and bubbles are caused by the goverment because all the can do is expanding the money supply and manipulate interest rates. This disalocates capital and devalues hard earned money from the people while only few institutions profit from it. Boosting the economy through expanding money supply is a lie. Every normal working person suffers from it! Youre made to believe its good for you. Learn about austrian economics or bitcoin money supply to understand it

    • @Andreas-ov2fv
      @Andreas-ov2fv ปีที่แล้ว +2

      The interest rate isn't the only lever for the government - just the preferred lever of the Federal Bank. The government also has taxes, spending decisions, subsidies, protectionism and a whole host of other levers to affect the course the economy is on. The interest rate is interesting because it's an easily understood and easily communicated goal by which the government - and the people, and journalists, et cetera - can benchmark the state of the economy. 5% inflation will generally mean you're in a little bit of trouble, stuff really isn't in control. Double digit inflation probably means you're in a year that's going to have Capitalized Letters in a history book at some point. So on.

    • @jamesbrown1645
      @jamesbrown1645 ปีที่แล้ว +1

      Stimulus or austerity requires a functional government.

  • @Atipat12
    @Atipat12 ปีที่แล้ว

    A Collapse Of Mafia Fed 😎😎😎😎😎😎😎

  • @windmaomao
    @windmaomao ปีที่แล้ว

    Thanks for the video. Essentially, gov wants to have a positive inflation number, but the number can't be high enough that causes attention. That's just awesome. People like to talk about the good or bad of inflation or deflation. That's just nonsense, it's like talking about the stock price is high or low. It's irrelevant. What's relevant is your entering moment, ex. your situation comparing to these cases.

  • @newlife-su7sd
    @newlife-su7sd ปีที่แล้ว

    it's a lie.. real number is much much higher

  • @Atipat12
    @Atipat12 ปีที่แล้ว

    BUY GOODS FORM #CHINA ????????
    😭😭😭😭

  • @ayoubmustafa487
    @ayoubmustafa487 ปีที่แล้ว

    Nixon shock stands behind all.

  • @johnneyface
    @johnneyface 8 หลายเดือนก่อน

    Lies

  • @hilwaamanamankiyar-pp5bf
    @hilwaamanamankiyar-pp5bf 8 หลายเดือนก่อน

    የወለኔአርዴየቴሌግራምፔጅ

  • @kavinsanthosh648
    @kavinsanthosh648 ปีที่แล้ว

    J

  • @fatehyabali
    @fatehyabali ปีที่แล้ว

    Bb

  • @iBuyBitcoin
    @iBuyBitcoin ปีที่แล้ว

    BUY BITCOIN

  • @richwhitelivesmatterforsureduh
    @richwhitelivesmatterforsureduh ปีที่แล้ว

    As a rich privileged woman, i dont care about it like... My husband is loaded with money. Lol #richbishvibe #nopeasants #nopoorpeopah

  • @SteveDutton-v
    @SteveDutton-v 7 หลายเดือนก่อน +573

    Economists and business leaders are voicing concerns at the start of 2023 that the year could be a difficult one. JPMorgan Chase & Co. Chief Executive Jamie Dimon said that the Federal Reserve may need to raise interest rates to 6% to fight inflation, higher than the peak level between 5% and 5.5% in 2023 that most Fed officials penciled in after their December meeting. Although I read an article of people that grossed profits up to $500k during this crash, what are the best stocks to buy/short now or put on a watchlist.

    • @SeanTalkoff
      @SeanTalkoff 7 หลายเดือนก่อน +3

      A 2022 Northwestern Mutual study found that 75% of U.S. adults admit their financial planning needs improvement. However, only 29% of Americans work with a financial advisor.

    • @mikey43221
      @mikey43221 7 หลายเดือนก่อน +2

      nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?

    • @mikey43221
      @mikey43221 7 หลายเดือนก่อน +1

      I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip