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That's the reason why we an live with 3-3.5% now and will be the...

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AlCp

26,350 Posts.

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29/03/24

10:09

Post #: 73115981
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Originally posted by kacy ↑

"Or Plan-C, cut interest rate and nothing happen as 3-3.5% inflation is the "norm".

Only if unemployment is high and labor is cheap. Wages in the US are currently increasing by 5% p.a. To cover their costs producers will have to put up their prices by more than that or go broke and that's the real reason why inflation is going up (not down).

That's why we need a recession to reset wages and prices and it will happen as explained below . . .

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That's the reason why we an live with 3-3.5% now and will be the new "norm", like the US Fed said there has to be a better balance and think they've achieved this.......we will see.

XJO Value at posting: 7,896.9
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