Posted on 09/17/2015 5:37:33 AM PDT by citizen
The entire multi-trillion-dollar global economy made investments this year based on the Fed’s assurance that it was serious about raising interest rates this year and would most likely do so during the summer.
However, summer came and went and so did some of the Fed’s credibility when it did not raise interest rates as anticipated.
Instead, the Fed kicked the can down the road to September, and here we are wondering if the Fed will again renege on its assurances.
If it does, how will anyone trust the word of the Fed’s chairwoman in the future? Banks are built on trust. The Fed must raise interest rates today or investors will begin buying bonds from countries with more trustworthy national banks.
Raise because the long term pain will be worse.
You’ve got my vote!
Raise.
I don't want to be the hard a$$ here, but I believe the country, our economy and society was healthier and happier when you had to actually work to sustain yourself and your family.
Consider the taxpayer handouts and monthly support checks received by so many. The recipients soon think of receiving these freebies as their right and won't even consider finding a job b/c they say "If I go to work, I'll lose my benefits."
Bah!
When is it supposed to be announced, raise or otherwise?
2:00 pm Eastern
Thanks
She’d make a better charwoman than chairwoman. No offense intended of course.
I think back to the first Reagan term. He did what was needed for the times. Can those sort of programs be replicated these days? I don't know, the country is so different that it was 35 years ago.
There are many millions more non-native Americans here now. Most are not bad people but also most are pre-disposed to expect more and more care provided by social programs. By us taxpayers. The world is smaller now, there is fierce competition for what few domestic manufacturing jobs we have left.
Democrats are forever pitting one group against another. They continually say there is a "war-on-something" going on which serves to divide us into this and that group. 0bama is a master of this divide-and-conquer plan.
Maybe Trump has the stature and presence to ignore the press and go around or co-opt the Democrats to get things done. Thing is, we really have no clue as to how he might really govern.
The more I hear from Trump, the more he is sounding like a U.S. version of the Venezuelan populist Hugo Chavez.
4% interest rates with 8% inflation is no different than 0% interest rates and 4% inflation. You still have zero real interest rate. Living off your principal draw-down or living off your illusory earnings on your money is the same. Under a high-inflation, high-interest rate scenario, your principal is still being drawn down through rapid loss of purchasing power. If you are going to die in 5-10 years, you may not notice it. But if you plan to live 20-30 years, you will get clobbered. You may have a nice fat account balance, but it’ll take a hefty chunk of it to buy a loaf of bread.
It’s been decades, it seems, since we had positive real earnings.
I agree. When I think FED I think “They are there to rig the game for their connected friends and politicians.” Just look at how their zero rates have screwed Main Street in favor of Wall Street.
But the rationale for the bailouts and ZIRP was you dear citizen. We did it all for you.
Central planning fails and always has. Individual planning works and always has. When will Americans learn?
Looming Fed rate decision a test of Yellen’s jobs vision
http://www.reuters.com/article/2015/09/17/us-usa-fed-idUSKCN0RH0GH20150917
“It is a game-time decision. The key is what Yellen thinks and my guess is that she will want to wait,” said Mark Zandi, chief economist for Moody’s Analytics. “If you put yourself in her shoes, you don’t want to err by going too soon.”
That’s a mistake the European Central Bank made twice in 2011.
As much as I'd like to get some additional interest income on my savings, Yellen should just go by the numbers and don't raise.
What should be done is to undo all of 0bama's business un-friendly rules, regulations and laws. Which means no way will this happen under this regime.
I agree.
Raise. Somebody has to be the adult and force some normalization. We can’t stay at 0 forever.
This is my third year of not working in a retirement part time job. It balanced my budget and then some. That's another part of the equation. At some point, one is healthy enough to still work, but not as healthy as they could be if not working. That relates to another thing that might happen if people were collecting interest on savings. Older workers might leave the work force at a younger age, opening up good jobs for younger workers.
I remember my Father-In-Law loving the shy-high interest rates under Carter. I could never convince him that, because inflation rates were even higher, he was losing money every year.
I’m six years younger than year and am working through a comprehensive financial model to see how much longer my wife and I should work. I like your point about being healthier if you don’t work. That’s a very important intangible that’s hard to put a value on. If you have the money and want to travel, you need to do so in the early retirement years when you have good health and are mobile.
It’s not easy figuring this out and there are so many unknowns and unknowables (dementia, cancer, Sky-high inflation, etc). Our inclination is to work at least another three years.
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