Sep 18, 2026 · 58 min · 12 segments
Today's show discusses this week's Fed rate hike and why it won't have any effect on inflation. Why monetary policy no longer affects the economy—either inflation reduction or economic growth…
Jack RasmusHost
People buying more are willing to pay higher prices because they really want something.
Or you can have a problem of price increases when you have shortages, supply problems, shortages of something.
Yeah, that's all it does, and even that not effectively anymore, and I'll explain why.
Okay, so the Fed raising interest rates by a quarter percent is supposed to dampen inflation by dampening demand.
And, you know, the mortgage industry, the residential housing industry has been in a funk for years now.
Well, you know, that's one sector where rate changes has some impact, but the point is they're going in the wrong direction.
So how are you going to dampen inflation, you know, in construction and mortgages by raising it another quarter percent? No, already there's no demand or very little demand.
In general, raising interest rates, even if it were like a half percent or a whole percent, does not dampen inflation.
And conversely, lowering interest rates does not stimulate GDP and economic growth as it used to, a little bit, but not as it used to.
You know, and that's because of the financialization of the US and global economy, and the globalization, moving investment, offshore investing by corporations, and now also by Trump policies, sanctions policies, tariff policies, dollar policies, all of these, financialism, globalization, Trump policies.
People buying more are willing to pay higher prices because they really want something.
Or you can have a problem of price increases when you have shortages, supply problems, shortages of something.
Yeah, that's all it does, and even that not effectively anymore, and I'll explain why.
Okay, so the Fed raising interest rates by a quarter percent is supposed to dampen inflation by dampening demand.
And, you know, the mortgage industry, the residential housing industry has been in a funk for years now.
Well, you know, that's one sector where rate changes has some impact, but the point is they're going in the wrong direction.
So how are you going to dampen inflation, you know, in construction and mortgages by raising it another quarter percent? No, already there's no demand or very little demand.
In general, raising interest rates, even if it were like a half percent or a whole percent, does not dampen inflation.
And conversely, lowering interest rates does not stimulate GDP and economic growth as it used to, a little bit, but not as it used to.
You know, and that's because of the financialization of the US and global economy, and the globalization, moving investment, offshore investing by corporations, and now also by Trump policies, sanctions policies, tariff policies, dollar policies, all of these, financialism, globalization, Trump policies.
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