Federal Reserve to increase interest rates by 75 basis points
anyone know of bullet-proof analyses into central banking policy out there?<p>after dealing with crypto projects that offer high interest rates, and do so by just inflating their token supply, fed policy seems magical to me. the fed’s offering you yield on your dollars, and that yield comes from printing new dollars (right? there’s no tax increase as part of this announcement). your share of dollars stays constant. so why is it that paying nominal interest on dollars makes people want to buy and hold onto them? how is it that inflating the supply via this one particular method <i>strengthens</i> the dollar? how do you model these things?