Posted on 11/17/2016 11:56:49 AM PST by Sam Gamgee
WASHINGTON (Reuters) - U.S. consumer prices recorded their biggest increase in six months in October on rising gasoline costs and rents, suggesting a pickup in inflation that potentially clears the way for the Federal Reserve to raise interest rates in December. Prospects for a rate hike next month also got a boost from other data on Thursday showing first-time applications for unemployment benefits tumbling to a 43-year low last week and housing starts surging to a nine-year high in October. The reports painted an upbeat picture of the economy early in the fourth quarter and came as Fed Chair Janet Yellen told lawmakers that the U.S. central bank could lift borrowing costs "relatively soon." "Today's data give the Fed more evidence to support a rate hike next month," said Alan MacEachin, corporate economist with Navy Federal Credit Union in Vienna, Virginia. "The only thing standing in the way at this point would be a disastrous jobs report in early December, a remote possibility at best."
(Excerpt) Read more at finance.yahoo.com ...
In the fwiw dept, the Market has built in 25 basis points.
Anymore than that, will spook everyone.
And Yellen says she’s not political.
5.56mm
Sam, I think you meant to say you wholeheartedly disagree.
Not trying to put words into your mouth, but that is what makes sense with what follows.
I would say that if competition can’t get us more than a fraction of 1% interest on passbook savings per year, then that model is broken.
If 20 and 30% are examples of what competition bring us, that model is broken also.
Give me 5% a year to use my money. Charge me 15% when I use yours.
Tell you what, I’d take a 10% interest spread any day of the week.
Maybe. I believe in the markets freely valuing the price of money. Not the Fed or any central bank.
This is a “GET TRUMP” move.
Sam, you’re argument rises and falls on the merits of what has taken place.
In a free market I get no interest on my savings and pay banks 20 to 30% interest on theirs.
F A I L !
There wants to data for the December 2015 hike. There isn’t the data to support is one. But just as in December 15, this one is to show that the Fed will raise rates when necessary. Just as in Dec 15 this one will have zero impact and is already baked into the cake.
We never learn our lesson.
It wasn’t pretty the last time they did this.
Last December? Almost no imaoct. In fact rats fell across the board after the Fed hiked in December. 10YUST hit a 4 year low ver the summer. It won’t have an impact now. It’s already priced in.
Some one who understands the interplay between the bond market and government finances may need to chime in here.
I have some understanding that the government might have some control over bond yields in their purchase and selling of US Treasuries.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.