What Is The 'Homer Sharingan' Meme On TikTok? The Viral 'Simpsons x Naruto' Crossover Memes Explained
The United States Federal Reserve will raise interest rates by 0.5 percent in response to increasing inflation, and financially informed memers immediately seized on the news to criticize the non-partisan central bank.
Live shot at the Fed trying to stop inflation pic.twitter.com/Kt0C0EBxhW
— Not Jerome Powell (@alifarhat79) May 1, 2022
Because the financial markets tend to respond drastically and strongly to anything the Fed says (in part because much investment today is done by algorithms and AIs that respond automatically and rapidly), this decision was subtly communicated in advance so it is not particularly surprising.
Watchers of the markets knew the Fed would raise rates, probably by a lot, but weren’t sure by exactly how much. An increase of half a percent is the highest rate increase since 2001, but at the lower end of what many people predicted might happen.
Just one day until the Fed Decision! pic.twitter.com/ypaIDSE9Km
— Rudy Havenstein, Department of Homeland Absurdity. (@RudyHavenstein) May 3, 2022
The algos will have read the Fed statement before you can even click on the link.
— Sven Henrich (@NorthmanTrader) May 4, 2022
The Federal Reserve controls the supply of money in the economy. It is a non-partisan board that prints money by loaning it out to banks and charges interest rates on the money it lends out. A higher interest rate means that banks will be less eager to borrow money, and a lower interest rate will make it easier for them.
When the Fed wants the economy to continue growing (during a recession, or in the middle of the coronavirus pandemic) it lowers interest rates, making the "money printer go brrr" — but the consequence of lowering interest rates tends to be inflation because there’s more money circulating. When inflation rises, as it currently is, the Fed raises interest rates again to decrease the amount of money in circulation — but this comes with the risk of triggering a recession and stopping economic growth.
My 3 year old woke up crying in her crib.
3 year old: Dad, why didn't the Fed preemtively hike rates on the first sign of inflation to slow the economy vack in Q1 last year.
Me: Ask your mother.— Assad Tannous (@AsennaWealth) May 4, 2022
Society if the Fed never raised rates again pic.twitter.com/ajFZvpeAoN
— Wall Street Memes (@wallstmemes) May 4, 2022
Many memers (and economic analysts) have blamed the Fed and its “easy money” low-interest-rate policy of the past decade or so for inflation.
I had this crazy dream last night that the Fed printed trillions of dollars over the past few years and was forced to raise interest rates 7 times because of record levels of inflation. Wild stuff.
— Douglas A. Boneparth (@dougboneparth) May 4, 2022
Live view of the fed reversing the money printer pic.twitter.com/31h3ipTbNs
— Wall Street Memes (@wallstmemes) May 4, 2022
Other factors such as Russia’s war in Ukraine, rising fuel prices, the effects of lockdowns in China on the supply chain impact inflation as well. In the face of all these economic headwinds, many memers found the Fed’s latest gesture to be futile.
nobody:
The Fed: pic.twitter.com/nCsvmBQ2OB— Dale, BA, CFA, CEO, COO, CFO, CIO, CDO, MDMA, LSD (@Dale_B_Jackman) May 4, 2022
SPOTTED: The Fed dealing with inflation. pic.twitter.com/ZyzFD0OLXy
— Sven Henrich (@NorthmanTrader) May 4, 2022
— Lyn Alden (@LynAldenContact) January 26, 2022
In the coming months, decisions taken by the Federal Reserve to combat inflation will impact everyone around the world — so there will likely be even more memes criticizing the central bank’s frequently controversial policy decisions.
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