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Fed hikes rates as inflation worries push up bond yields

184 points · 250 comments · wslh

dabinat · 1789588567 · 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. jameslk · 1789589453 · focus · HN ↗
  Both parties are responsible for the inflation and debt. Fiscal policy is largely driven by congress, not the president
  1. matteoraso · 1789590079 · focus · HN ↗
    And which party controls congress? I'll give you a hint: It's the party that spent decades advocating for irresponsible tax cuts without cutting spending[0].
    [0] Yes, I know that the Republicans said that they were going to cut spending to match the tax cuts, but that never ends up happening.
    jameslk · 1789590474 · focus · HN ↗
    The high inflation since Covid and $40 trillion in debt didn’t happen under one party
    throw0101a · 1789597764 · focus · HN ↗
    > The high inflation since Covid and $40 trillion in debt didn’t happen under one party
    Between his first term and his second term to date (2+ more years to go), Trump is responsible for more that one quarter (29%) of US debt (USD 11.6T / 40T):
    * <a href="https://time.com/article/2026/08/21/national-debt-trump-biden/" rel="nofollow">https://time.com/article/2026/08/21/national-debt-trump-bide...
    There was a bit of a mitigating circumstance of COVID (for Trump and Biden), which caused the debt to jump for many countries as well (and not just the US), but it's not like Trump et co are helping the math along with all the tax cuts and asking for a US$ >1T military budget.
    But I would say a large reason why the US is in the fiscal position it is now in is because of Trump and a GOP Congress. (See also tax cuts under Bush 43 and Reagan; Bush 41 raised them a bit.)

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