I think there are no better alternative. Rate hikes are thought to reduce spending through borrowing and encourage saving with high interest. But risk is that it might disrupt businesses leading to recession or stagflation. This is just very general theory. In the real world, if the people can afford they will spend. Just that there will be a tipping point where price increase has to slow down. I am just a novice but I think experts cannot be absolutely sure as well.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments