Fed's Goolsbee: 'A Little Wary' As Latest CPI Data Shows Tariffs Pushing Up Goods Inflation | Metals Mine

  • Fed's Goolsbee: 'A Little Wary' As Latest CPI Data Shows Tariffs Pushing Up Goods Inflation

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Vancarbon
Jul 18, 2025 11:00am
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They really haven’t gotten to grips with inflation , and now we have the Harvard educated President telling the world that US rates should be at 1% .

If you have inflation creeping up at these rates , what do you think will happen at 1% !

The next Fed chair is now seen as a patsy , a “ yes “ man , there only to do the Presidents bidding . Fed independence has all but gone , just the final nail to be put in .
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35T
Jul 18, 2025 11:50am
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Goolsbee is an idiot who has always been extremely political, you can see his old clips on CNBC saying debt doesn't matter and the government can print all the money they want for woke causes and nothing bad will happen.

Anyone who thinks the Fed is made up of smart, independent, unbiased people is clueless. They have been wrong at every major turn for decades. Get rid of all of them, abolish the Fed.
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aiak888
Jul 18, 2025 8:22pm
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Quoting Trader#2513
{quote} Who is the Harvard educated president? Cutting rates is cutting costs for suppliers, just like reducing labor costs or taxes, so cutting rates means cheaper goods. Cutting rates gives competitors more access to credit, which means more supply and cheaper goods. Also higher rates are a stimmy check to savers and bondholders, so cutting rates would also reduce demand. That's why low rates has only ever been associated with disinflation. Why anyone thinks raising rates fights inflation is a total mystery. High rates cause inflation and if inflation...
Cutting rates can make inflation worse because it makes borrowing cheaper, so people and businesses spend more. That leads suppliers to raise prices to increase profits. If it keeps going, everything could become so inflated that people would stop buying or borrowing to avoid massive debt. And don't forget about low-income consumers, they get hit the hardest.
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Trader#2513
Jul 18, 2025 3:21pm
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Quoting Vancarbon
They really haven’t gotten to grips with inflation , and now we have the Harvard educated President telling the world that US rates should be at 1% . If you have inflation creeping up at these rates , what do you think will happen at 1% ! The next Fed chair is now seen as a patsy , a “ yes “ man , there only to do the Presidents bidding . Fed independence has all but gone , just the final nail to be put in .
Who is the Harvard educated president?

Cutting rates is cutting costs for suppliers, just like reducing labor costs or taxes, so cutting rates means cheaper goods. Cutting rates gives competitors more access to credit, which means more supply and cheaper goods. Also higher rates are a stimmy check to savers and bondholders, so cutting rates would also reduce demand. That's why low rates has only ever been associated with disinflation.

Why anyone thinks raising rates fights inflation is a total mystery. High rates cause inflation and if inflation comes down then it's in spite of the high rates, not because of.
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Trader#3172
Jul 18, 2025 10:14pm
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Ooof... cutting rates stimulates an economy.

A stimulated economy increases demand without a linear increase in supply as producers play catchup (yes, investing in capacity and supply chains are also affected and will have increased input costs if they attempt to expand production, or, conversely, will be unable to keep up with demand as shortages ripple through the system).

This causes an imbalance in the supply / demand relationship as purchasers bid up the cost of goods, and producers add extra layers of input costs AND profit taking.

Why are we still having this conversation in 2025..??
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