Posted on 07/06/2022 7:43:49 AM PDT by Browns Ultra Fan
Generally speaking, The Federal Reserve cuts rates as a recession approaches. But not this time!
The Federal Reserve is expected to raise their target rate by 75 basis points at the FOMC meeting today.
We are already seeing Fed rate hikes being priced into the mortgage markets, as Bankrate’s 30-year mortgage rate fell to 5.57% after rising above 6% in June. The reason? Recession fears have caused Treasury yields to fall.
The Fed is hiking their target rate, but has been sloth-slow in unwinding their balance sheet.
Yes, The Fed has been sloth-slow in removing the Covid-related stimulus. But is The Fed trying to pull a “Volcker” by raising rate to choke off inflation EVEN IF THE ECONOMY ENTERS RECESSION?
Here is Fed Chair Jerome Powell showing the amount of Covid-related stimulus removed recently.
(Excerpt) Read more at confoundedinterest.net ...
We are already in recession ......
Powell is for sure. Biden? He’s just reading (as best he can) whatever is on the teleprompter.
I believe they want a Depression. Their actions prove it.
Next Fed meeting is July 27.
75 basis points proves the Fed is not serious about tackling inflation.
Bet on more inflation.
Maybe but interest rates have historically been 2-3% above the inflation rate, which makes sense, banks don’t like lending money at 3% for a home mortgage when the inflation rate is running at 8-9%.
When Paul Voelker was head of the Federal Reserve, he raised interest rates by 500 basis points versus today which would be only a 75 basis point increase.
Powell is aiming for a soft landing recession. That means the dog food you’re eating comes with a helping of salsa to make you think it’s a taco.
They absolutely are trying to force a recession.
We have too many dollars chasing too few goods. The only way to get out of this cycle they created, they believe, is to “cool off” the economy and reduce the dollars so the demand will come down to the current level of supply.
It’s dumb, but that’s the only way they can see to resolve the situation they created.
We do need an economic reset to some sort of gold and silver standard. That would stabilize the dollar and prevent politicians from created eleventy trillion dollar spending/laundering packages.
I don’t think they have much of a choice. Inflation is roaring here in southern California. Grocery prices are outrageous, rising almost every day. Much higher than the reported 8% or whatever figure they’re tossing around. My weekly grocery expenses are 20-30% higher than a couple months ago. Gasoline has doubled in price since 2020.
“(Trying To Force A Recession??)”
Well, if you want to kill inflation people have to cut back their spending (demand).
A recession with the resulting higher unemployment is likely to convince people without a job to spend less.
What would you do to get inflation under control?
“soft landing recession”
That is like trying to make a “soft landing” on the sun!
This guy screams it like it’s a bad thing. Given a choice between a recession or inflation, I will choose a recession every time:
The recession caused by Volcker only lasted a couple of years (1982-84), but it took 20 years to get inflation under control.
The full ramifications of inflation is something that Democrats and Socialists can never understand. It ultimately destroys everything they touch.
Of course they are. That’s exactly what needs to happen. The fed behaved in a wildly irresponsible manner for all these years and this is the result.
This is confusing. Are they raising the rate again today or is this from last month?
The recession is necessary. That it is on plug’s watch makes it even more necessary.
This guy screams every day about rates or something. Can’t understand his gig or the cut of his jib.
Interest rates have been too low for a long time.
The problem with inflation is that it never goes away. Nobody ever gives back any of the gain in prices. Well, energy does but that is all. Retail everything else never goes down after racing up. I have never seen it at the grocery store that I can remember.
Hey, Nathan here’s the unique and under reported cause of current inflation:
PRINTING TRILLIONS OF DOLLARS TO FUND RUNAWAY FEDERAL SPENDING
This isn’t traditional inflation. It’s currency-printing inflation aka destruction of currency by inflating currency supply.
Think Venezuela, Weimar Republic and Zimbabwe inflation. The same mentality is held by the US’s media-political-bureaucrat elites. They can’t support an economy with their thieving policies so they print money.
Recession is just the beginning. It will most likely be a depression by November 2024.
The elites own assets so they will PROFIT in a depression wherein they can buy up more assets on the cheap.
“Completely agree w/you re: recession vs inflation. “Animal spirits” all on their own can climb the economy out of a recession. The great majority of recessions thru history have been 1 year-18 month affairs. Not pleasant, but they have a way of curing themselves. Inflations do not cure themselves, they feed on themselves.
1Mortgage Rate History: Check Out These Charts from the Early 1900s
2Here's how much home prices have risen since 1950
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