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AftyOfTheUK t1_it8scg7 wrote

Reply to comment by pattydo in [OC] Inflation rate and nominal interest rate by giteam

Indeed it doesn't. But to reign in inflation we need to reduce economic activity. Fuel prices are weakly correlated with economic activity so may or may not follow that trend depending on other determining factors.

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pattydo t1_it8slr1 wrote

I mean, no we don't? Just because the Fed only has a hammer doesn't mean the problem has to be a nail. This is not the best way to fix it, and is probably one of the worst.

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