Yes, but then again the dollar is going to be worthless after the printing the trillions to fund the BBB.
Inflation kills. It’s damage is permanent.
The purpose of raising rates is to prevent an over-heating economy from causing inflation-producing shortages. If you know that the cause of inflation is not an over-heating economy, why would you raise interest rates? The Fed’s failure to recognize temporary, transient causes for inflation resulted in recessions in 1982, 1991 and 2001. (Also, the Fed refused to see a developing crisis in 2007; forcing banks to make bad loans in order to be able to make good loans certainly made this recession far, far worse.)
Kiplinger: The Magic Mortgage Rate Number to Tip the Housing Market
“Are interest rates too high?”
Maybe, depends on what level of unemployment and inflation you want.
No.
Interest rates should be 3% above inflation.
And the Inflation Target should be Zer0.
Seeking to lower rates solely to make massive amounts of debt have cheaper servicing is a complete slap in face to older Americans who are seeking to survive on fixed-rate assets instead of the gambling casino of the equities market.
The market sets the rates.
They went up today.
The Fed has a lot to say about it, but money goes where its best treated.
Trumps’ call to lower interest rates, rewards borrowers at the expense of savers.
Reducing the cost of borrowing will stimulate economic activity and lessen the burden of existing debt, but reckless borrowing encouraged by low rates is a big part of the reason that we have this huge debt problem to begin with.
No.
Need to hold at the current rate or even increase by 50 or 100 basis points to get back to “reality”. The Fed was a decade/years too late in raising rates after the 2008 “GFC”.
Yes. Next question?
In the consumer Market interest rates are theoretically based on risk as well as return. Higher risk borrowers pay higher rates of interest to justify the risk to the lender. This has also been distorted by government interference in a number of ways.
I’m so tired of people whining about the interest rates. They are not high. Anyone remember when interest rates were truly high? Think back to 1980 before Reagan got hold of the economy.
The drastic cuts started after 9/11 to jump start the economy. Excessively low rates caused banks to start charging their b.s. fees for everything including paper clips (j/k)
0% interest rate should never be a goal. ! Some people are on fixed incomes and are using CDs interest rates to supplement SS.
One interest rate that should be slashed is credit card rates which are criminal imo. I don’t have running balances on CCs anymore but I’m not young anymore either. Younger people get hammered by those rates some into bankruptcy. Although a different type of credit, it is still a short term loan.
Lowering interest rates is like a hit of crack cocaine. It feels good for a while. Then it leads to destructive long term consequences.
They are lower than they were in the 1980’s and 1990’s but we managed.
Kids today just want excuses for failing to thrive. Always an excuse.
there is ZERO reason for us to be at nearly 5%!!!
The FED Chairman's TDS is costing We the People trillions of dollars.