How will higher interest save us from higher fuel prices when it only increases the expense of the vehicle and little to control prices of everything. Oh , I guess if necessities get high enough it will help you stick to a diet much easier.

Is the following google information true?

The Consumption Tax on the Poor:
Lower-income households spend the vast majority of their income on immediate necessities like food, gas, utilities, and rent. When these prices rise, they have no choice but to pay more, leaving less (or nothing) for everything else.The Rich: Higher-income households spend a much smaller percentage of their income on necessities. They have a buffer to absorb higher costs without changing their standard of living.

High interest only puts poor money managers deeper in the hole

Maybe we could use those massive bunker-buster bombs to get rid of the poor money managers in those holes ? I guess it will be more effective than those used in 2025 to eliminate the nuclear threat?

doubt if anything will save us im no economist compared to when i got my first mortgage in 1978 and now interest rates are rock bottom which imho leads to buying whatever and whenever ,huge credit card debt which results in higher prices to recover from default loans My daughter is a realtor most of her sales are to hedge funds trust funds and private investors buying 2nd and 3rd homes

If one is little and a poor manager he gets a trip to the cliff at the railroad station. If one is big and a poor manager , he is too big to fail.
In a world of big fish eats the little fish, the only hope for the little fish is to hide and wait, lol.

At a certain point Inflation has worse effects on finances than higher intrest rates. Low intrest rates are great if Inflation is in check. Even through brakes on a car hurt fuel mileage id hate to be without them.

I have no idea what point you are driving at with this post, lol. Big business bad....is that the gist of it?

The problem is, how does higher interest rates bring down the cost of fuel ?
Nothing wrong with big business until the monopoly players get all the motels. How can a sane plan such as high interest be effective with management that is insane?

Intrest rates are about more than the cost of fuel. It slows down the economy and is a tool for fighting inflation. There is inflation on more than fuel. And outside contributing factors are causing the increase in fuel cost. Supply and demand of commodities is a thing.

Nothing can bring down the price of fuel much other than an end of the conflict. In theory, at least, however, if individuals or corporations have less discretionary money to spend, they will buy less fuel. As well as less of other non-essential items which will lower inflation.

Consumer sentiment is low, but yet that's not seemed to slow down people's spending at all. If it had, inflation would be falling on its own and it's not. Still lots of discretionary money floating around out there. And it's NOT only in the hands of the rich......

The poorest of the poor won't be hurt much by a rate hike, as most of them HAVE no credit anyways. They will benefit the most as prices of groceries and other essentials come down.

IMO the interest rates have been far too low for far too long. The extremely inflated market values of most all companies is indicative of that. I'd like to see Warsh shock everyone today and raise it by 50bp instead of just 25bp but I know that is just wishful thinking.

Fuel is running the train in the inflation thing. Supply and demand is great until they demand you will supply it or else.

If you dont know how high inflation hurts an economy and how raising intrest rates can slow inflation educate yourself. Its a bigger topic than what can be adequately covered on tman if you dont have some foundational knowledge. Way to much propaganda out there if your uneducated.

You have to see the big picture and its definitely a balancing act that no matter what you do has both pros and cons.

My simple understanding is the politicians especially the Republicans want intrest rates to stay low to help them in the midterms and also to keep the intrest the government pays on the trillions of dollars of debit they have got us in to stay low. Basically making the long term problems worse to avoid short term pains.

There is inflation, then there is cost increases to cover the cost of fuel increases. They are not the same thing. The fuel thing is likely temporary.......and ties straight back to Iran, more specifically the IRGC bunch running Iran. Some how, some way, they continue to cling to life......and are hoping to last long enough to get past mid term elections. After that, if GOP still in charge of House and Senate, then they should fold like a cheap card table. Get rid of them, turn country back over to the Persians.......then things should calm down, then ALL Mideast oil should start flowing again.

Having the hooties blow up Saudi pipeline didn't help. Having Ukraine blow up Russia refineries didn't help.

Again fastest way to solve fuel cost problem is get rid of IRGC bunch. GOP will support that. The other bunch will do everything possible to obstruct Trump to keep IRGC bunch in place. So if you want lower fuel costs.......vote accordingly.

Now imagine a middle east with no IRGC run Iran, no Hamas, no Hezbollah and no Hooties kicking the hornets nest every 6 months or so. For first time in decades......things over there allowed to calm down. That is the price we are paying now........and it is temporary.........and well worth it.

Fuel isnt any higher than anything else when your money is worth less. Money printer keeps pumpin...

I wish that was true. Oil is a much easier fix and a short term problem. My thoughts are government debt and printing money is a bigger driver. Their actions of years past are catching up with us.

Delving a little deeper into that question.....

as rates go up, the economy slows down. Businesses invest less and consumers spend less. As discretionary spending slows, the amount of freight companies ship to retail locations also slows, which reduces consumption of diesel and jet fuel. Expansions are also often put on hold in businesses, further reducing gas consumption that would be spent on building or fuel costs associated with servicing a larger/different area.

Additionally, as credit tightens, what's the first thing that consumers usually cut from the budget? That's right.... travel. No cruises, flights to the Bahamas, or weekend road trips to the coast or Vegas. Gas saved....

Another big one is housing. As mortgage rates go up, new house construction does down and new house construction uses a lot of fuel, what with the heavy equipment used as well as the freight that all needs to be trucked in.

If you had been paying attention since covid inflation has been terrible. Even when fuel priced fell when no one was driving and oil stock hit low.

Clearly something has you all worked up over fuel prices alone and you are not seeing the big picture or contributing factors.

Point it i didnt see you worried whe gas was under 3 a gallon during covid and inflation was hiting other areas with all the free printed money flowing.

Maybe its just the fuel prices that can't your attention and now you see the problem we have had for years and being new to it are just focusing on fuel I dont know.

Like yote trap I believe interest rates have been to low for far to long.

plastic is what is ruining this country. People keep paying the higher prices that are driving the RECORD profits for companies.AS long as people pay it . Companies will charge it. Gas included Younger folks don't look at cost of anything . Just whip out the card swipe it go on. That card is maxed out? Get the next of many they carry with them.

High fuel prices are a secondary issue in regards to inflation.
An end to the idiotic war with Iran will bring prices down, but it may take a while to get the oil flowing again.
An end to our proxy war against Russia will also help with fuel prices but to a lesser degree.

However, the core causes of inflation will still exist.

Winner winner^^^