Posted on 05/27/2016 4:16:45 PM PDT by Olog-hai
Federal Reserve Chair Janet Yellen said Friday that an interest rate hike would be appropriate in the coming months if the economy keeps improving.
While economic growth was relatively weak at the end of last year and beginning of this year, it appears to be picking up now based on recent data, Yellen said during a discussion at Harvard University.
She said she expects the Fed to “gradually and cautiously increase” its key interest rate “and probably in the coming months, such a move would be appropriate.” …
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She is becoming convinced that Trump will win.
Certainly they’re acting as if such is a foregone conclusion.
It’s the baby boom growing up and buying stuff
Now there is too much stuff and deflation thus negative rates
Look for the FEd to raise rates right after election if Trump wins. They will try to leave him with the worst possible economy they can.
Translation: When Trump is elected, the rate is to jump to 10% immediately.
most economists believe raising the rates at this point would put us on a course that would collapse the economy.
i guess they’re prepping for the election
I remember the 1980’s. Got a mortgage at 13.5%. It was like putting your mortgage on MasterCard.
So Ol' Yeller believes the phony, rigged data and lies put out by the .gov employees, which tell the story of how great the .gov is managing the economy?
What a buffoon.
It’s starting. Obama will cease quantitative easing and raise interest rates in an attempt to cause major economic upheaval as we approach the election.
Yada yada yada - she’s been saying this for a while and keeps kicking the can down the road. Eventually, it will have to be done and it will cause some a degree of “inconvenience” - funny how we keep adding gas to the fire because it might inconvenience some if we actually save the building.
Right, because a revision up from 0.3% to 0.8% indicates major economic growth!! (/barf)
The problem the Fed has is that because of 8 years worth of near 0% interest rates, they have no capabilities at all to fight the next recession, as if we've actually exited the last one in the first place.
Make no mistake, major economic pain is on the short term horizon as the Fed has no choice but to start raising rates no matter how bad the economy really is. The pain will be twofold:
First, raising rates will slow the economy even more than it is now. The stock markets which have been addicted to, and demand low interest rates which artificially props them up as investors seek ANYWHERE they can find profits will react accordingly (go down.)
Second, more and more money will no doubt be re-directed towards servicing increased interest payments on the National Debt. That will mean the next President will have to raise taxes dramatically, cut spending dramatically (and those cuts will be in "social spending" and entitlements, likely impacting Senior Citizens first) or both. As we know, raising taxes ALWAYS hurts the economy.
Doesn't take a rocket scientist to figure this out. The next President (Trump) is going to have to deal with some major economic damage left behind by the most incompetent President, Administration and Fed Chair in this country's history.
Quantitative Easing has been over for some time now.
Obama cannot raise interest rates, but his sock puppet Janet Yellen can, and she will in an attempt to save the Democrats. Bank on that.
I believe the term QE was dropped, but the practice is still occurring to the tune of $90 billion a month.
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