It is how it works in all scenarios, though. Higher rates usually cause people t...

FredPret · 2025-04-05T04:51:00 1743828660

Sure but it's extra stupid to do it that way. Cause inflation with a tax, then mess with the money market to fix the inflation.

roflyear · 2025-04-05T16:49:21 1743871761

I 100% agree with you, but the Fed is independent and they only have a few levers to pull.

They don't make policy and they go out of their way to not comment on policy. They say they are apolitical (though of course they are 100% pro-establishment).

If the entire government was working together, yeah, sure, your theory holds. But that isn't how things work.