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Comment by mberning | Hacker News Reader

The fact that 6.x% year over year is interpreted as some kind of victory is comical. Last year it was 7.x%. This year it is 6.x%. Exactly how long are people on the bottom rung of the economic ladder expected to hold on until inflation is brought back anywhere near the claimed 2% target. At this rate it's going to take a loooong time to get there. I have to imagine the fed is not very pleased with this.

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The fed? They were the ones that initiated the largest QE spree of all time so that their friends and masters don't lose their fortunes in an unexpected recession.

The very same recession they are now trying to cause to get inflation under control, just that now there is way more debt and the recession will be much worse. As a side benefit this recession is expected so the oligarchs can go into cash and buy everything up for 30% less.

edit: I shouldn't talk, my central bank is the ECB which is much worse and much slower. We're just lucky the fed is the world's central bank so we benefit from their actions a little.

We are talking abt decision makers that effectively label having a health job market as a problem.

Jobs = bad

Says the same clowns who printed in excess of 40% of all dollars in existence within the last few years.

All that liquidity is still in their hands today, but those being punished are the poor folks who did nothing wrong.

Yes the fed has been fairly transparent that they intend to raise unemployment via higher rates in order to combat inflation. Well unemployment is still very low and inflation is still relatively high. Perhaps they will decide to do another 50bps hike instead of 25bps.

That's just not true at all. They have correctly observed that tight labor is contributing to inflation and fighting inflation could lead to higher unemployment. That's just nature taking it's course. Unemployment is absolutely rock bottom right now and the current regime of tightening has not put a dent in it. The Fed could not possibly be getting any clearer signal that they are doing the right thing now.

Don't forget that even if inflation comes back to 2%, that's still only a rate of change. Prices continue to rise, just more slowly.

The prices that we have today, that so many already can't afford, aren't going anywhere anytime soon.

Right, it's extremely unlikely that prices will ever go down in aggregate, unless we have a very long and sustained deflationary period.

Right, the quick answer is that wages have to go up, but then that causes more inflation. So the real answer is that the tax system needs to be overhauled to redistribute such that economic disparities are reduced for the first time in multiple generations.

But I don’t see that happening anytime soon. Not sure how this ends.

Why kind of statement is this? Of course it's "some kind of victory" because it's better than it was before. No one is saying it's over, but the expectation is that once the trend goes downward, then we've broken the back of the problem and further tightening will likely cause us to overshoot. There is no possible way to make inflation drop from 8 to 2 in a month unless you trigger massively deflation in 6 months. The current data says the rudder is in the right position and we just have to wait for the ship to come about.

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