Volcker raised rates to almost 20% to break inflation in the 70s. But that's whe... | Hacker News

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		memish on April 12, 2022 \| parent \| context \| favorite \| on: Consumer prices rose 8.5% in March – highest since... Volcker raised rates to almost 20% to break inflation in the 70s. But that's when debt was low and we were able to service it. Now that debt is high, how much can the Fed actually increase rates? Are they out of options?

onlyrealcuzzo on April 12, 2022 | [–]

Who says they'll need to raise rates to 20% to stop inflation?

I think everyone agrees they can't raise rates to 20% without causing catastrophic side effects.

I think everyone also agrees they don't need to raise rates that high.

throwaway4good on April 12, 2022 | [–]

5% would probably do.

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