How can our government assist the Fed in reducing the inflation rate?

Biden, White House officials, and Congress….

How can they assist the Fed in reducing the inflation rate;

Example; Would lowering tariffs help?

 

They can stop wastful spending/borrowing and reduce the cost of goods. One of the best ways to reduce the cost of goods is to reduce the cost of energy. This is why Biden is begging other countries to produce more oil. Ironically, there would be more oil in the market if he didn't decide to go to war against our energy sector beginning on his first day in office.

Lowering tariffs just offshores jobs and incentivizes American companies to produce more things overseas and import more goods from overseas. That's not a good long term strategy. But, nothing this administration has done is a particularly good short term or long term strategy when it comes to managing our economy. People think it's great when the government gives them "free" stuff until they realize there's no such thing as a free lunch. The best strategy is to grow the economy organically, but Democrats need to hand things out for votes and virtue. Yellen has said she didn't realize they were going to have long lasting crushing inflation so she likely advised the Biden administration that they could keep doing all their shenanigans and it would have been better absorbed. She has recently said she was wrong.

 

Several good points, thank you for your response.

 

They could all resign, that would be the biggest boost.

 

Mid-terms usually work out for the party opposed to the presidency. But, current polling shows a potentially historic blowout for in favor of Republicans that is driven almost entirely by people's anger over the economy.

 

Another change they could make is to vote to cancel to "Inflation Reduction Act" that economists agree is only going to increase inflation now while having little benefit (if any) many years in the future. Democrats doing victory laps after the passage of this bill just goes to show how stupid and out of touch they are. They think Americans are dumb and believe the silly title of their legislation rather than the impact of their legislation. Get rid of it before it does its damage.

 

Spend less money. I think that's about it. And also I think that's why its not going to happen.

 

tax cuts and lower the minimum wage.

 

How to lower the demand?

Spend less money!

Good one.

 

Lower the demand for money? Printing more of it without increasing valuable resource will essentially accomplish that, (though only relative to the value of resource, of course). And if we spend less money, we would also (hopefully) print less of it as well. But I guess inflation could be interpreted in the terms of 'demand for money'... that just seems like maybe an overcomplicated way to do it? Maybe Im not understanding what you meant...

 

Isn't that like the blind helping the infirm?

 

Do me a favor. Don't repeat that oft repeated line about Biden's war on energy without proving cause and affect. Did he correctly announce an effort to reduce our reliance on carbon based fuels at the start of his tenure due to the risks from climate change? Yes. What you need to prove now is his rhetoric or actions had a material affect on the price of oil.

 

Do me a favor and do a little research before responding so your posts come from a position of knowledge rather than ignorance.

 

Incorrect. https://static1.squarespace.com/sta...es+of+Budgetary+and+Macroeconomic+Effects.pdf

The nonpartisan Congressional Budget Office concluded this month that the changes would have a “negligible” impact on inflation this year and next. And the University of Pennsylvania’s Penn Wharton Budget Model concluded that, over the next decade, “the impact on inflation is statistically indistinguishable from zero.”
https://apnews.com/article/inflatio...-environment-63df07e15002c01fb560a6f0e69fcb03

The real reason Repubs want its repeal is to prevent Dems from getting credit due to the positive benefits for Americans.

 

How can government(s) assist the Fed in lowering the inflation rate.

1. The current government has to cancel or postpone existing policies that have/will thicken people’s wallets.

2. LOGICALLY, government has to implement policies that will lower prices, both goods and services.

 

You posted the fact that Biden begged OPEC to increase production, thus, ask the Democrats what policies would increase domestic production?

 

Tax cuts would thicken people’s wallets, and we had several stimulus packages that have done that, thus, not a good idea.

We need government policies that will lower prices.

 

Quote; “Why don’t they (Oil & Gas Producers) use their record profits to increase production?”

That’s not how it works!…….Most Oil & Gas producers have already determined their capital investments for 2023, and generally, 2022’s capital budgets are nearly depleted, thus, we won’t see a noticeable increase in both drilling and servicing activities until next year.

 

It's really very simple. You quit trying to strangle it by choking off the fuel supply and quit trying to bury it under a ton of useless paper.

 

To be replaced with what? Or whom?

Careful what you wish for. Their replacements could be far worse.

 

Not possible. A monkey with a dart board would be better than Biden and his entire useless brain dead administration.

 

And Oil & Gas Producers also have the option to drill, and produce in regions where the extraction tax is significantly less than 10% versus 18%, both onshore and offshore.

 

Me as dictator

 

Yeah drilling for oil where there isn't any .makes perfect sense. Dude you can't drill anywhere without a drilling permit and team biden is slow walking drilling permits having issued fewer than any admin since drilling permits first became a requirement.

 

The topic was to help the fed. The fed has been raising interest rates all year. That is the equivalent of printing less money, since there's really no money being printed. But it raises borrowing costs in an effort to slow/stop spending.
Inflation is when demand outstrips supply. So demand needs to be lowered or supply needs to increase.