• kava@lemmy.world
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    10 months ago

    What we’re going to see is a slight boost in the coming months as the federal reserve lowers the interest rate (by coincidence, also an election year 🤔)

    But with the interest rate going down, the main barrier holding us back from higher inflation is being torn down. What will be the consequences of this? Prices will rise.

    I think they are betting that the Ukrainian war ends in the next few months. If not ends, at least becomes a frozen conflict. This would remove a large inflationary pressure from the global system.

    It’s a gamble. Perhaps they even are negotiating with Russia behind the scenes. Russian high-level officials were spotted flying to DC last week.

    We’ll have to see. Hopefully they can end the war and lower interest rates. That would in effect give a large boost right before the 2024 election. Is that enough to pry the election away from Trump? I don’t know. Biden is incredibly unpopular (even more unpopular than Trump at this same time! One of the least popular presidents in history).