Consider this : We have been at artificially low interest rates for years and years. All to stimulate the economy.
A whole generation thinks this is how it is. None recall mortgages/car loans at 10-15%
When I was an econ major, I learned that interest rates, over time, are at about 4 to 5%.
Imagine the brakes on the already weak economy if rates inch up 100% to 1% or 500% to the traditional 5%?
I guess that big GDP correction for the first quarter of 2016 really did the trick.
It went all the way from ZERO.3% to ZERO.8%. A real Barnburner...
My best guess it that they didn’t include all the “Made in America” Donald J. Trump Campaign Gear being sold and the amount of Aviation Fuel it took to keep Trump Force One flying from Rally to Rally.
[if the economy keeps improving]
WHAT economy that keeps improving?
Illegal entry into America? Spending Jeb’s campaign cash?
These are the only growth areas I’ve seen.
Oh, and the Federal debt.
Federal Reserve Chair Janet Yellen said Friday that an interest rate hike would be appropriate in the coming months if the economy keeps improving.
++++
This must be a misprint. I think she meant to say “while we pretend that the economy is improving”.
I’ll be watching for the correction to come through.
Can’t have bronco go out on a low note can they? Smoke and mirrors while we burn.
High interest government debt.
Now that it looks like Trump will be elected she is free to let the economic house of cards collapse and crash the economy
Unlike previous Republicans, Trump is not going to let Yellen and Obama make him the chump that gets stuck with the blame for Obama’s crash of the economy
I’ve been watching this stuff for 40 years and this situation is pathetic.
This country desperately needs a strong economy that grows at an average of around 3.5% a year or more and that means less govt interference.
No one in Washington has the guts to say or admit that.
I don’t understand all the details. But could it be
1) We have to sell LOTs of debt each month ($50-$100 billion)
2) Not enough buyers want to purchase our debt at current rates
3) They can’t do another round of “quantitative easing” because everyone just attacked Trump for talking about “printing money” and he’d make them look like fools when he points out that is what a big part of “quantitative easing” is/was.
4) To avoid looking like fools now and admitting that the deficit matters they’ll sell debt at a rate we can’t afford to repay in the future.
And monkeys could come flyin’ outa my ...
Not going to happen.
what tea leaves is she reading ?
the last durable goods report was mostly airplane buys.
Take out airplane buys and durable goods orders in general was almost non-existant.
Not until I close on my house, please.
The rate will go up, when the bond collapse begins, not long before repudiations of debts.
She is becoming convinced that Trump will win.
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
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.