Typically a country’s central bank uses monetary policy to try to control inflation. Yahoo Finance Senior Reporter Jennifer Schonberger breaks down how the U.S. Federal reserve tries to quell inflation. The segment is from May 13, 2024.
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So why was the interest rate Zero under Trump?
Because inflation was like 1.8% at the time and then they printed trillions of dollars and wouldn’t you know that printing the trillions of dollars would water down the rest of the dollars and circulation it’s not like printing billions of dollars like bad. Why did you hit trillionsI don’t think many people can comprehend how big trillions are
I just wanna add that just because inflation was that low credit should not be given to Donald Trump. Inflation has been that low in the United States for 35 years, however eventually, the bills become due the financial crisis the bail out get bigger public that grows money is printed while we try to control demand through interest rates what people in decision-making positions don’t consider/understand/deal with is that not all demand is elastic. Demand for good services stay relatively the same, but cost more fill the pockets of the few I can afford to Weather inflation by parking their money in assets that appreciate over time and if you have enough money to do that, you should definitely do that but if you don’t, this is going to be an extreme economic times.