The Fed isn't fighting inflation. It's bankrolling Wall Street
Central banks talk about interest rate hikes in very clinical terms. They call them a painful but necessary medicine. The Federal Reserve Board is currently locked into an aggressive tightening cycle. The American public must now accept a cooling labor market. Families face credit card debt at multi-decade highs and prohibitive mortgage rates. The official narrative says demand must be crushed to restore economic balance.
TL;DR
- Central banks frame interest rate hikes as a painful but necessary medicine.
- The Federal Reserve is undergoing an aggressive tightening cycle, leading to a cooling labor market, high credit card debt, and prohibitive mortgage rates.
- The official rationale is that demand must be reduced to restore economic balance.
- This monetary policy is a regressive engine that strips wealth from wage earners and transfers it to the financial sector and asset holders.
- The rich benefit while ordinary people with the least suffer the most.