> The real problem with this recession is that businesses are being asked to reduce prices by increasing supply - but paradoxically, the cost of increasing supply is higher because of interest rates.
You've nailed why the fed is in a pickle. Their only tool is a hammer, when they need a screwdriver. People moaning about energy companies not investing in more supply are missing that the fed is on the other side telling those same companies they are going to reduce demand and drive prices down. It doesn't make sense to invest in more supply when the fed is actively working against you.
You've nailed why the fed is in a pickle. Their only tool is a hammer, when they need a screwdriver. People moaning about energy companies not investing in more supply are missing that the fed is on the other side telling those same companies they are going to reduce demand and drive prices down. It doesn't make sense to invest in more supply when the fed is actively working against you.