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kyaghmour | 3 years ago

Sorry, you lost me at #2. How does the public receive a raise here?

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qbasic_forever|3 years ago

Sustained labor shortages putting upwards pressure on wages. It's more of an external factor, but it really can't be ignored that the pandemic, despite people burying their heads in sand and pretending it's over, is continuing to sideline millions of workers.

sp332|3 years ago

And on the spending side, people who can't afford to buy a thing just don't count in the inflation metrics. For example, when nvidia saw that fewer people were going to buy GPUs this generation, they raised unit prices. That makes the inflation number go up even though economic activity is down.

cma|3 years ago

And this makes their existing low fixed rate 10y treasuries more valuable how?

bubbleRefuge|3 years ago

The Federal government is a net payer of interest to the private sector on a monthly basis. When interest rates are increased by the fed, this amount increases. Since the amount of outstanding treasuries is at all time highs vs GDP, its significant. Unlike before.