$Inflation: your money through 2022

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Wall Street Journal (WSJ) says:

[Chairman] Powell Says Supply-Chain Bottlenecks Could Lead to Somewhat Longer Interval of High Inflation​

The central bank chairman said he still expects prices to come down on their own, adding it is “very difficult to say how big the effects will be in the meantime.”

Dollar Tree to Sell More Items Above $1 as Costs Rise​

The retailer plans to sell products at $1.25 and $1.50 or other prices slightly above $1 in some of its stores, as supply-chain snarls, a tight labor market and inflation push costs higher.

The Wall Street Journal & Breaking News, Business, Financial and Economic News, World News and Video

WSJ online coverage of breaking news and current headlines from the US and around the world. Top stories, photos, videos, detailed analysis and in-depth reporting.

www.wsj.com

Interest rates have been quite low for years.
Experts warn to expect substantial increase soon.

Are you ready?
Do you see this as an opportunity?

 

[mark mywords]

Interest rates have been quite low for years.

"quite low" ? they are lower than at any time in modern history

Several EU countries have floated the idea of negative interest rates (you pay the bank to look after your money) although none have actually implemented it.

The base rate of interest in the EU is 0.35%

 

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I'd like to consider mm #2 your nominating me for understatement of the year.

On a more plausible note if you'll pardon a patriotic boast, I'm gratified that U.S. history overlays your perception of "modern history". I'll bear it in mind when looking at old photographs of Washington & Jefferson.

Fig #2:
I've heard of "the federal funds rate" for decades, either never knew or forgot.

In the United States, the federal funds rate is the interest rate at which depository institutions lend reserve balances to other ... read more @ ixquick

Would it be wrong to think of it as a wholesale interest rate?

Fig #3:
Do you suppose the Democrat running for president in 2024 will claim credit if interest rates climb to historically more normal levels?

 

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are "normal rates of interest" good thing, a bad thing or just a thing?

Most people would agree that high rates are a bad thing but if low rates are also bad where is the sweet spot at which the rate of interest becomes "good" and why is that rate "good"?

Most Americans have no savings so the fact that savings attract no interest is of literally of no interest to them.
Most Americans however do have debt (mortgages, car loans) so should like low interest rates

 

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It seems we're eye to eye on this one mm.

I've never seen a one-sided coin.
High interest rates can attend inflation, which can mean a salary gradually loses $buying $power. That's bad. BUT:
Their retirement savings, home equity etc., can grow. They like that.

Any status quo invariably has a constituency that wants to preserve it.
It's a historic reason political reforms are so rare. However bad the system, it's the system that put them in power. Why would they risk that with reform?

"Most Americans have no savings so the fact that savings attract no interest is of literally of no interest to them." mm #4

"... no interest to them" !
Holey Cow !!