So I'm quite disappointed by the Fed's suggestion of just a 0.25% rate hike in March when housing prices have nearly gone up 50-100% within the past few years in most metro cities, as well as bubbles occurring in meme stocks, and that prices in general have been going up. Something simple like the dollar menu McDonald spicy chicken burger is now $1.47 in my area and portion size is like half of what it used to be.
I'm kind of at a loss here. While the supply chain disruption is there, it is also in part caused by the large demand of consumers. At this point, bonds and fixed income investments (i.e. Treasury, CDs, savings) they are all shit investments because of the low interest rate environment while inflation is at 7%.
It feel like the Fed is continuing to feed the asset bubble with cheap money. I just don't understand. This is the time to be more aggressive with hiking rates because the economy is actually doing quite well and can withstand some shocks.
Should I participate in the musical chair game by putting my money back in the markets and trying to see when the music stops, or is there something that actually works well in a low interest, high inflation environment?
Submitted March 02, 2022 at 11:41PM by huangr93 https://ift.tt/12nhmSa
