Posted on 04/24/2022 7:48:12 AM PDT by Browns Ultra Fan
For the moment, Fed Chair Jerome Powell and several Fed governors are singing “No sugar tonight” for the economy.
As The Fed sings “No sugar tonight” exemplified by the number of expected Fed rate hikes by February 2023 has grown to 10.4. Mortgage rates are now the highest since 2009, but inflation is the highest in 40 years. The result? The REAL 30-year mortgage rate is -3.25%.
REAL average hourly earnings are now a terrible -2.99% YoY thanks to the worst inflation in 40 years. REAL home prices are growing at 11.8% YoY.
Traders are betting that even with the Fed boosting its target for the federal funds rate by 2.5 percentage points this year to 3% won’t be enough to get the inflation rate back down to 2% over the next decade from around 8.5% currently.
In nominal terms, mortgage rates are seemingly trying to rise to 2007 levels (6.5%). But the gap between the 30-year mortgage rate and Fed Funds target rates is back to 2009 levels.
(Excerpt) Read more at confoundedinterest.net ...
The solution is simple, we have to print more money and give it out to the chosen ones. At least that will be DC’s solution. It is not going to get better, ever.
They killed the economy for no good reason, then showered trillions of “free” money on us. Those paltry checks they sent us are going to cover 1% of the increased costs of their damned inflation. Retirement for tens of millions of people is ruined.
They say inflation is “8.5% currently.” What a joke. How many things are up 50% or more in ONE YEAR?
Paltry checks. Some families pulled down north of $12,000 with all 3 stimulus payments. One of the three, you could get up to $5,600 for a family of 4.
Paltry my patoot.
That family that pulled in $12k is going to pay many times that in higher prices caused by printing the “free” money to send them the $12k in the first place.
All of that was moot, anyway, because they didn’t have to shut down the country in the first place.
Oh, I here you. The amounts received will be swamped by inflation. I was just noting that the amounts given were not “paltry”. In fact, had they been paltry, current inflation would be much lower. That $12,000 for that family renting became a down payment on a $300,000 home at 3% interest, pushing the value up to $400,000 today.
The $6 trillion in direct stimulus put into people’s hands to spend directly is a big reason for runaway inflation today. It was not a patry amount. It was a handsome sum. But yes you are right, it will be swamped by inflation.
The FED is raising interest rates which is causing the stock market to go down and down since Dec 2021.
On Monday I will decide if I sell all my AMD stock in order to protect my retirement money. I figure if the stocks keep going down afterward I can buy more shares at lower prices and then hope the stock goes up : )
AMD has their quarterly results on May 3rd but it has been falling too fast and I do not think I can hold for another week. They should have great earnings as usual but the stock can still drop because of the economy.
Also in June is when Tesla board will decide to split the stock. I will buy it if they do as the last time they split in August 2020 the stock almost doubled in just 3 weeks from about $1,300 to $2,100 from the news then split 5-1 then in 2021 more then doubled.
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.