Posted on 07/26/2023 11:43:43 AM PDT by DFG
The Federal Reserve hiked its benchmark federal funds rate by a quarter of a percentage point on Wednesday after skipping the previous hike, bringing the rate to the highest level since 2001.
The rate hike brings the Fed’s target rate within a range of 5.25% and 5.50%, making this the eleventh hike since March 2022, after temporarily pausing the rate increases in June. Most economists anticipated a quarter-point interest rate hike as a part of the ongoing effort to bring inflation down, bringing the high end of the range to the highest rate since January 2001, according to the Federal Reserve Bank of St. Louis.
“The Committee decided to raise the target range for the federal funds rate to 5-1/4 to 5-1/2 percent,” the Federal Reserve press release said. “The Committee will continue to assess additional information and its implications for monetary policy. In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.”
(Excerpt) Read more at dailycaller.com ...
Time to buy treasuries!
I like it
I’m finally earning some interest on my savings.
Inflation iscout of control. The BIGGEST problem is that with inflated prices, come inflated sales tax. It is robbery, especially, of the poorer people.
For those of us with the ability to extremely limit spending, and greatly increase money markets positions in cash, 6% is pretty nice.
It’s also very healthy for the companies listed on the stock exchanges to have to compete for investment dollars. If your stock can’t provide earnings and dividends of at least 8%, the money will move to cash.
BTTT.
There goes your interest payments. It’s not far off from having to pay $1 trillion/year.
I bought my first home in the 1980s. These people don’t know what high interest rates are.
Where do you see 6%?
Gold is up to 2015 dollar easing by the time Biden’s out it should be worth at least 25 cents.
this is what I believe will trigger the soon coming collapse of the economy. Which will begin the dominoes principle.
1/3 of the nation’s commercial mortgages are coming due. But what are the commercial property values when the occupancy rate has been vacant for years? At a time when lending is tightening, interest rates are soaring, banks are collapsing, and the economy is tanking.
There are 1 1/2 trillion dollars worth of commercial real estate loans coming due. Current real estate assets have lost value in recent years due to vacancies. It is being reported that currently 25-65 percent of commercial real estate in the major cities are vacant. There is currently a mass market of properties lacking proper maintenance and going into a state of disrepair.
(while little is being done currently to find new commercial tenants), I have to wonder if these properties will eventually be subsidized by the gvt for purposes of housing illegal immigrants.
Personal debt has reached an all time high and the percent of requested loans being denied are increasing.
Auto loan repossessions are also increasing, As are home foreclosures.
People are living on extended debt in order to sustain living standards.
Yet, we are constantly being lied to by the media in order to pretend bidenomics is working. When in fact the current policies are purposely collapsing the economy in order to maintain control of its people.
The dollar is losing value and about to be replaced by a central banking digital dollar, (i.e. a cashless society)
Moodys Analytical recently released a report that we’ll over 700 U.S. banks are at risk of default in the near future, while other reports indicate that the end result is only 6 major banks (which are run by the federal reserve) will survive.
Predictions are by this Fall we will see these events begin to crash the economy and begin the dominoes principle.
Meanwhile insurance companies are drastically increasing rates as well as denying to write new policies.
Inflation is still out of control and is far from becoming manageable as the fake media would have us believe.
The coming hyper-inflation will be unsustainable further triggering an economic collapse.
The current economy has been propped up by means of quantitative easing, (the printing of unbacked paper currency) which has only led to the further erosion of the U.S. dollar as the leading world currency. Which is why other nations are using alternative currencies and rejecting U.S. dollars. It has also led to inflation, and will soon increase to the likes surpassing even that of the Carter administration. which by the way, economic forecasters no longer measure the rate of inflation as they used to during the Carter years. No longer are food and energy cost increases factored into the inflation statistics as they once were.
We’ve already entered into a recession despite what propagandists would have us believe. The definition of a recession has always been 2 back to back quarters of GDP losses. However, the goal posts have since been moved and the definition redefined in order to further prop up a failing economy.
What’s coming soon will far surpass the effects of the great depression and will ultimately lead to the fulfillment of Bible prophecies, which is that of a one world government, a one world currency and a one world religion.
I like it
I’m finally earning some interest on my savings.
***********
I like it as well.
The sooner we flush the cheap money era and the malinvestment that accompanied it down the toilet, the better off we are as a nation.
Cheap money pimps selling equities & real estate will disagree with this assessment.
“I’m finally earning some interest on my savings.”
Yup—it is a nice feeling to have decent returns without playing Russian roulette with the stock market.
“I bought my first home in the 1980s. These people don’t know what high interest rates are.”
Or pre-computed interest and the rule of 78.
as long as inflation/deflation and stagflation DESTROY your wealth... and your money today becomes increasingly worthless going forward... your money is actually gaining NOTHING in value. Your 100k today, is now worth 85k that you had during the trump economy.
things are going askew.
at some boint, a loaf of bread will purchase a bag of gold.
I wonder what the Misery Index is.
I do it all the time.
Get some of my tax money back from the bastards!
Anytime Democrats are in power it is maxed out for tax payers
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