Fed rate increase = lower hifi prices?

+1 @noske 

I just looked at speakers and many brands have increased or is increasing their prices with 20-40% ! 
I have a distinct feeling these new prices will not go down much the next 2 years.

Maybe the 2nd hand market will get some more items for sale which may push the prices a bit lower but they could just as easily start by going higher if new items are prices higher.

@mikeydred "price gouging"....lol......as if printing money endlessly, massive deficit spending and handicapping domestic energy have nothing to do with it.

The Fed has just recently (in the last weeks or so) reverted to no net increase in its "money printing" (quantitative easing, QE) campaign.

QE is designed to flush the economy with liquidity, for financial institutions to spend on buying shares and real estate and to lend it out if they feel like it to audiophiles not wishing to miss out.

Some countries ceased QE last year, eg, New Zealand in July, and are now going the reverse and reducing their bond holdings.

@soix  well we can ask you a few questions on something I might have an idea about. First off do you know how many days worth of food supply the world has at any given time? Do you know how big of percentage of the food supply comes from the Ukraine? Do you know how many countries are net food exporters? When you answer those you will understand what a big deal it is if there is a crop disruption in the Ukraine. There is a difference in not being able to afford gas and not being able to buy food. People are so far past even thinking that there food doesn't get made in the super market it is scary.  Now secondly if I am so simple what percentage did your net worth rise the last two year? 

Regards

A key purpose of Central Banks raising interest rates is to tame inflation. But macroeconomic measures are akin to turning an oil tanker - they take time to have an effect. Rate rises also tend to have the effect of strengthening the currency, making imports more expensive. Currency markets react much faster than consumer price setters do. In a globalised economy exchange rates are heavily influenced by what other players do. So for example, the Euro fell against the Dollar recently because the ECB did not mirror the FED's actions. The indications now are that the ECB will begin raising rates, so that will affect the Euro dollar exchange rate. In any event, consumer price inflation has happened for a whole host of reasons - supply chain shortages, labour shortages, winding down of quantitative easing etc. In short, I would not expect interest rates in and of them selves to have any appreciable effect on the price of hi fi.

@retiredfarmer 

No need for unverifiable phallic measuring contests about whose net worth moved more during a pretty narrow timeframe. You guessed right on real estate and gold during that window. You are also fortunate that the Canadian dollar tracks so nicely with the US dollar. Rather than searching for someone to admire the paper gains you seem to be enjoying, you are hopefully implementing a strategy to secure and hedge against the coming unwind of Canadian real estate gains pushed (until recently) by the arms open policy toward the monied class of China so prevalent in Canada in recent years.