How does raising interest rates control inflation?

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Title	:	How does raising interest rates control inflation?
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the problem is that lower spending makes people feel poor and thus become attracted to populists
Comment from : laughingvampire

Why would a commercial bank raise their interest rates especially in terms of lending money out if they earn more on their reserves than lending it out? Wouldn’t they lend money on a lower rate if they already have a lot in their reserves, why would having a lot in their reserves motivate them to raise their interest rates to make it “worthwhile”?
Comment from : Johnny

Stockss are falling and bond yields are rising, but makets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control I'm still at a crossroads deciding if to liquidate my $400k stocck portfoIio, what’s the best way to take advantage of this bear market?
Comment from : Code Blue

Having earned thousands of dollars in the trading market, I dare not doubt the profitability of the cryptocurrency market Get a weekly income of 10600 euros even in this time of recession and high inflation Britney is doing a great job, She is the right woman to lead the investment business
Comment from : Mike Morris

How does raising interest rates control inflation? It doesn't The common line of talk is that raising the cost of loans impairs people's ability to get loans, curtailing spending Not commonly mentioned: it adds interest income to the portfolios of the wealthy, and puts more dollars out into the economy
Comment from : Queena Myheart

I spend a lot more when interest rates rise because I have infinitely more money thanks to higher interest rates
Comment from : parkerbohnn

it is not complete true, it increases housing cost which is in big proportion of leaving expenses they should force oil companies lower the oil prices some inflation is because of greed and gauging Which is very common in extreme capitalism
Comment from : Paul Luo

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Comment from : Evelyn Tretyakova

Everybody is concerned about the market going down but refusing to take advantage of it The best decision I ever made in my life was :nvesting in the crypt0 market Trust me guys, it really pays a lot! 😊
Comment from : Levi Jude

the system is full of scam in so many angles
Comment from : Henry JoshVa

inflation remains well above the Fed’s 2 target Some of the top commentators in the markets, business and economics have been sounding off on just how bad they think the next downturn might be — and how far stocks may have to fall I need ideas and advice on what investments to make to set myself up for retirement, my goal is to have a portfolio of at least $850k at the age of 60
Comment from : Muller Andre

how the criminal banking system steals your money and labor, making your cash worthless whilst demanding more productivity from the taxation and debt slaves
Comment from : Ashhu

Where do Feds get the money to pay interest on the bank deposits?
Comment from : Frank Mowasat

Interest rates are the price we pay to borrow from the future Play around with the natural market rate and you get trouble The can can no longer be kicked down the road and the future has now arrived and collateral damage is done to people who had nothing to do with the greed around the cause of the origional crisis of around 2008/9
Comment from : erongi23

In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government This includes exploring opportunities in stocks, gold, silver, and digital currencies Despite the challenging economic situation, it remains a favorable time to consider these investments
Comment from : Bobby mainz

Market declines, soaring inflation, a significant increase in interest rates by the Fed, and rising Treasury yields all point to additional losses for portfolios this quarter How can I profit from the present market turbulence? I'm still debating whether to sell my $125,000 ETF/Growth Stock portfolio
Comment from : Stephen Potter

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them Well, at least my advisor does too, jokingly
Comment from : Jason Powell

The central banks raise interest rates because they can’t keep up with there made up models which ruin the economy faster
Comment from : Fahad Iqbal

Is this deliberately misleading? You've left out the elephant in the room: that most housing loans in the UK, are NOT the bank lending the buyer, savers' money, on which interest needs to be passed back to the saver You know that the vast majority of housing loan capital in the UK, is created electronically by the bank, for the purpose specifically of that loan, so there is no saver/lender, no-one to pass on interest to, on the majority of the loan - all the interest stays as bank incomebrbrThis is the biggest factor in the current type of inflation - excess money supply, from new pounds created as electronic capital, for new loans, by commercial banks The second factor in current inflation, is global commodities hitting limits to extraction, or production which depends on energy, becoming more expensivebrbrRaising interest rate has no impact at all on the 2 causes of our current inflation Limiting the ability of commercial banks to create new electronic pounds for loans, would have much more impactbrbrThere's no escaping the conclusion that you are mislead, that you are presenting a classical narrative, which no longer applies The central mechanisms you're presenting would have been true in the 1970's, when housing loans had to be from actual savers' money But the classical mechanisms you are presenting, no longer operate; the rules were totally changed, in the 1980's Why not be honest, and say that by allowing electronic creation of sterling for loans, mostly for housing, we have built and economy that is founded on inflation? Ordinary people are in a cost of living crisis; they have not caused this inflation, and you are wrong to imply that the solution lies in us accepting high interest rates Be better than that! You have the ability!
Comment from : Keith Hertogs

When the federal reserve increases it's interest rate taxes go up Taxes go up because the government needs to pay back loans at high interest When taxes go up prices go up because businesses have to charge more When prices go up people start demanding raises from their employers When Trump brought the central bank interest rate down to zero everything was much more affordable brbrTrump 2024
Comment from : Filth McNasty

I saw testimony in Fox Forex" woman make -$5,000 24 hour's Profit" I give it a tried, now am also sharing my testimony with over, $10,000 from cryptocurrency
Comment from : Elsas chan

We will get inflation down by making 5 million unemployed/bankrupt/homelessit's a winner all the wayand guess what,if you reading this you probably voted for these people to do it😂😂😂😂😂
Comment from : simoncycles

15th raise today UK br😪
Comment from : Vanessa S

I wonder if just asking the population to hold back their spending- the reward being lower interest rates would work too?
Comment from : D Libby

Why everyone is so agitated over inflation and inflation data baffles me Inflation has always existed, and individuals have used investments to combat it For example, the stock market return always outperforms inflation I heard of someone who invested $121k in October of last year and increased their portfolio by more than $400k I'm looking for recommendations that will provide similar return
Comment from : Esther

Well it's time for the BRICS- New World Order to come up with a default reserve currency or simply go back to gold as the reserve It will be too chaotic for each country to trade in their respective currencies with the daily change in exchange rates
Comment from : charlotte pauline

Fantastic,your video just keep getting better & better All my favorites
Comment from : Keantay Roberson

My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in US
Comment from : Micheal brain

The markets are still unsure if the federal reserve will continue to its plan to raise interest rates until inflation is under control What is the greatest strategy to take advantage of the current market while I’m still deciding whether to sell my $400k worth of stocks?
Comment from : judy newsom

Excellent topic Sharing with my network
Comment from : Melissa

This is all true and its absolutely so horrible The central bank is making consumers poorer and hindering businesses from expanding by raising interest rates So why do ordinary people support this?
Comment from : Tobias Taraba

In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government This includes exploring opportunities in stocks, gold, silver, and digital currencies Despite the challenging economic situation, it remains a favorable time to consider these investments
Comment from : alex young

Very insightful
Comment from : @Tumpizm

Jesus this comment section is littered with bots
Comment from : Joshua Yonathan

The 1 Millionaires stay rich by staying off high interest debts and investing passively Personally i made my first million from having investments that spreads across stocks, etfs, coins and bondsWhat i can say to early investors is diversification and solid managementat this point I'm actually grateful for my advisor Deborah Jean Dykstra it's been great
Comment from : Nancy Franciss

I still don't understand how raising interest rates affect my milk prices going upif I have a fixed mortgage how would that make me spend less if the value of my house go down? My spending will remain the same The only thing that can slow down my spending is if my everyday items that I buy prices go up
Comment from : Black Spiderman

Norman Rocks! What a great show, super informative Norman 👏 I'm subbing your channel now
Comment from : Steve vL

Humans are so cool
Comment from : RUXIE

Nobody knows, only the evidence is it worked in the past, Does that means it works in today's globalized and fast-forwarding market brTime does not go back, Only the so-called intellectuals try to go back in time to solve the problemsbrTrade war, untrustworthy China, European problems without war and with warbrGlobal economic slowdownbrTaiwan war?brEvery thing countbrIn 2008 India china and Asian countries was growing superfast
Comment from : shivbaba

Donald Trump va mandar al Central Bank a la pinche verga de la chingados , chupando la br verga del Donald Trump
Comment from : Zack

Banca Central v-a fi fututã în cur la ruinã
Comment from : Zack

Donald Trump v-a fute în cur punîndu-i de caprã pe DeepState Banca Central îi v-a suge pula lui Donald Trump & Vl Putin
Comment from : Zack

Bunch of Lies ,BS brBut, Donald Trump's power drains the Swamp DeepState
Comment from : Zack

It's time for cancer on the waybrNo doctors's advice
Comment from : Zack

BRIC'S BANK is moving up the ladder successfully
Comment from : Zack

Central Bank never can't get any recoverybrHa ha ha !brIt's a huge Pig in a poke
Comment from : Zack

How about considering the possibility of negative inflation rates to increase the value of money? We could reduce wasteful spending and consumption, and instead adopt a more sustainable approach similar to nature's ecosystem, from an economic standpoint
Comment from : Novartus

I hate when they call us "ordinary people" brThat's the typical elitism that the world runs onbrIt's all a facade
Comment from : Knuckles the Echidna

aka the righ get richer
Comment from : Jamie C

Make a lots of dollar notes to downward the inflation
Comment from : Great people

They don’t It’s all a game
Comment from : Markus Wright

Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680k savings vanish after putting in so much effort to accumulate them
Comment from : Stevens Middlemass

In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government This includes exploring opportunities in stocks, gold, silver, and digital currencies Despite the challenging economic situation, it remains a favorable time to consider these investments
Comment from : kim young

doesn't help that government cause the inflation by letting their pal's take the pi@s by hiking up their prices It seems like the rich befit all over for inflation
Comment from : Simon Stanton

Its July 2023 and the failure by banks is unbelievable
Comment from : Danielle A

More immediately than a collapse in the stock or real estate markets, inflation directly impacts people's standard of life It is hardly surprising that the present market attitude is so negative If we are to live in this economy, we are in dire need of assistance ETF and stock markets are still unpredictably volatile, just like the housing market My $370,000 portfolio has been reduced to rubble
Comment from : Dylan Moris

So can I say central bank will not stop raising rates until we see a fall in house prices?
Comment from : Aussie 4x4

The financial system has been artificially pumped for over a decade to ensure big pockets were lined; and now those same hands will make a fortune in the largest transfer of wealth in human history by shorting it on the way down Inflation does have a roll, but that's to keep everyone panicked, and focused on their bills and expenses, rather than focus on the capital crimes of politicians and corporations,I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market??
Comment from : Deborah Clark

Nice
Comment from : Sujoy Kumar

Americans estimate they’ll need more than $1 million to retire comfortably — but most aren’t bullish about meeting that goal Millennial workers predicted they will need to accumulate $13 million, according to a new retirement survey from investment manager Schroders Just 29 expect to reach that target I’ve been sitting on over $745K equity from a home sale and I want to invest on the stock market, how do I achieve this?
Comment from : Quinn Conor

More immediately than a collapse in the stock or real estate markets, inflation directly impacts people's standard of life It is hardly surprising that the present market attitude is so negative If we are to live in this economy, we are in dire need of assistance ETF and stock markets are still unpredictably volatile, just like the housing market My $370,000 portfolio has been reduced to rubble
Comment from : Ruth spense

interest is a trap that a person is forever falling
Comment from : NTM _JAN

2:52br- Commercial bank earn more on reserve -> raise IR when lending outbr+ Variable-rate Mortgage -> higher IR -> less cash for other spending -> business: wary is raise pricesbr+ Fixed-rate mortgage: indirect impact -> mortgage will become more expensive for new buyers -> house prices: fall -> house's owner: poorer -> spend lessbr+ Firms: more expensive to borrow & invest -> less economic activity -> fewer jobs & lower wages -> less money for household
Comment from : Nguyễn Hồng Đào

Not a days tine by 24 hour and no a month by 3O days brHidden 🎉
Comment from : Ismail Ali

More immediately than a collapse in the stock or real estate markets, inflation directly impacts people's standard of life It is hardly surprising that the present market attitude is so negative If we are to live in this economy, we are in dire need of assistance ETF and stock markets are still unpredictably volatile, just like the housing market My $370,000 portfolio has been reduced to rubble
Comment from : Finest Bear Hug

Increased losses for portfolios this quarter are predicted by market drops, skyrocketing inflation, a major interest rate hike by the Fed, and rising treasury rates How can I profit from the volatile market right now? I'm still considering whether to sell my million dollar bond and stock account
Comment from : Raynold Grey

The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market precisely when the news is most negative and investor sentiment reaches its lowest point
Comment from : Angelina Cortez

Paying more means saving less so wheres the balance here If you have inflation you have less Saving less
Comment from : darren Williamson

Interest is the disease of economy
Comment from : Mo Fields

Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly I graduated into a recession (2009) My 1st job after college was aerial acrobat on cruise ships Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years
Comment from : Helena Bonham

In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government This includes exploring opportunities in stocks, gold, silver, and digital currencies Despite the challenging economic situation, it remains a favorable time to consider these investments
Comment from : William Yejun

I urge everyone to start somewhere now no matter how small, this is literally the time for that, forget material things, don't get tempted, i became more better the moment i realized this with Mr Sam
Comment from : Chris Bartley

Even with the right technique and assets some investors would still make more than others, as an investor, you should’ve known that by now, nothing beats experience and that’s final, personally I had to reach out to a stock expert for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again
Comment from : Angelique Ramin

Investing today is hard for me now because I have no idea of how and where to invest in I would be happy if you could advise me based on how you went about yours with Mr Sam Deymon, as I am ready to go the passive income path with him
Comment from : Misa Sylvester

Investors should be cautious about their exposure and be wary of new buys, especially during inflation Such high yields in this recession is only possible under the supervision of a professional or trusted advisor like Mr Sam
Comment from : Hahaha Walter

People over play their wallet 😮 they want what they want 😅
Comment from : Lisa Masters

Stonks
Comment from : modizzle

Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look
Comment from : David Velasquez

Still, bank controls the world
Comment from : Raymond Abrantes

Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place It's all coming together and it could lead to a real disaster towards the end of this year (or sooner) With inflation currently at about 6, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains
Comment from : Hodge Chris

Quoting Jon Stewart about raising interest rates: "You know what might help? A kick in the nuts"
Comment from : João Santos

Often times the best way to beats inflation and the recession is usually to wait it out, but considering how down bad we are and inflation currently at an all time high of 10, I'm on the clock and I can't help but panic considering I should be retiring soon, how do I grow my stagnant reserve of $300k, i'm running out of options
Comment from : Silvester Miles

A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k
Comment from : Janny Luits

Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control I'm still at a crossroad deciding if to liquidate my $138k stock portfolio What’s the best way to take advantage of this bear market?
Comment from : instinctively_awesome

Raising interest rates causes inflation Higher debt carrying cost causes the prices to have to price the cost of debt in In the time before record debt there was less of an inflation effect but now the old metrics are no longer true They know this and are just trying to tank companies so they can consolidate and create deals for vulture funds
Comment from : abe licon

So many bot comments 😂
Comment from : Penguin

After losing so much to stock market, One best investment decision I ever made afterwards was investing in financial markets Which has earned me $34,970 profit every 14days lately Trust me guys it pays a lot
Comment from : Kimberly Guyer

Trump pressured the Fed to keep interest rates too low for too long overheating the economy This directly lead to inflation in the US The rise in housing prices was enormous Inflation has dropped from a high of 91 in June of last year to the current 49 It looks like we will avoid a recession
Comment from : johnny b goode

Since the policy has been too big to fail and endless government intervention to prevent hardship it caused an environment where nothing suffers consequences for actions It will reach a point where no amount of intervention will keep reality from setting in
Comment from : Dennis Brown