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Fed hikes rates as inflation worries push up bond yields

184 points · 250 comments · wslh

  1. dabinat · · focus · HN ↗
    Prediction: this causes a recession in two years, right after a Democrat wins the White House, who will be blamed for it. The economy will turn around after a few years, just in time for a Republican to win and claim they fixed it.

    This is how Republicans have a reputation for being economically savvy despite actual evidence to the contrary, because the general population doesn’t understand that economics runs on a time delay.

    1. Scottn1 · · focus · HN ↗
      At what point into a presidential term does it become their actual mess? And is there evidence of a time delay? Because by that argument, the mess we are in would been caused by Democrats.
      1. jfengel · · focus · HN ↗
        Usually, months to years. The economy is a very big ship and slow to steer.

        This particular crisis is quite abrupt, caused by a sharp jump in the price of oil. Most presidents don't really deserve either the credit or fault that they receive on the economy, but in this case there's a very clear and direct connection.

      2. ryathal · · focus · HN ↗
        All good is due to MyParty, all bad is due to OtherParty.
      3. HWR_14 · · focus · HN ↗
        There's not a constant cutoff. It depends a lot on what the president and the administration do. Does the president push the button and start nuclear war? They are the primary driver for the new economy. Does the president continue the same policies that were working for the last decade and continue to work for the length of their presidency? They might never be the primary driver.
      4. xboxnolifes · · focus · HN ↗
        Depending on who you ask, the mess we are in is caused by Democrats.
      5. RickJWagner · · focus · HN ↗
        Arbitrarily decided by the person with political convictions blinding them.

        Yes, it happens to both sides. People convince themselves their side always makes right decisions, the other side always wrong.

        The truth is that the secret sauce is in the pendulum going back and forth. The excesses of one side are soon erased by the other. It is working, as it has for many years.

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