High unemployment is what the Fed want to control inflation even if it means going into recession but this time the recession might be a deep recession even though that's not what the gov't/Fed/market are looking for.
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Inflation isn't increase in prices. Increased prices is a result of inflation. Inflation is increase in money supply. Prices are a function of supply, demand, and velocity. Inflation the money supply messes with this balance.
The Philips curve talks about a correlation between unemployment rate and price increases, but that's flawed logic because the very definition of inflation is messed up. Employment affects velocity and demand, that's why manufacturers lay off to balance the supply to match the other 2.
Oil prices will never come down globally as long as the RuskoUkrainian war continues. What folks here dont understand is US is a net importer of Oil/Gas no matter what policies pass because the taxation and the processing is costing more.
Have you not listened to the Fed chief speak. That’s exactly the plan. He wants a recession.
He wants less people to be able to afford to make purchases.
Every time the market starts to rebound he says something to push it down. If your stock options were valuable, you’d be able to purchase more. Your 401k is dropping in value. How is the Fed accomplishing this?
By raising the cost of the money your borrow. So instead of you buying an item for less with a low interest loan or credit card. You get to give the banks that borrow money from the government more money in interest payments each month. Prices will stop increasing because the majority of people won’t be able to afford them, then the recession hits.
With less people purchasing, less people making products are needed. Then there is less selection of the products you want to purchase. Grab your popcorn.
OPEC+ is keeping oil price at $90/ Barrel. Russia always considers winter as their best friend and they are prepared for a long haul war. Therefore, inflation will be here for a while. Even if unemployment soars, and demand drops, cost of goods is not coming down due to lock downs in China ( supplies remain tight) and as mentioned oil. If Republicans come back, green new deal is dead and drilling will be back to bring Oil prices down dramatically which will actually hurt Russia. We'll see…….
It's worse than you think...
http://www.shadowstats.com/alternate_data/inflation-charts