Posted on 12/14/2016 11:32:55 AM PST by RummyChick
Federal Reserve officials, amid signs that the U.S. economy soon could shed its long period of stagnation, approved the first interest rate hike in a year Wednesday and said it foresees three more increases next year.
The stock market reacted calmly, while the dollar and bond yields rose.
(Excerpt) Read more at cnbc.com ...
Why the FED moved is meaningless.
It’s what you do about it that matters.
Lets hope that Trump fights back when Dems try to blame him. Of little value as the titanic slow sinks into the sea, though.
Yup. Gird your loins.
[The FED is political and will need to be gutted.]
Correct
[Yellen is an Obama partisan and her days are numbered.]
I certainly hope so.
The Dallas fed guv before Kaplan was ok
Most are dems though
No doubt.
I'd say pretty dang good. Yellen, though, doesn't realize that letting bad investments fail strengthens the economy by making those resources available for another company, at a cheaper price.
Bad news: Trump can only replace 2 board members during his first term. Yellen is one of the inflation “doves;” the other 4 are far more itchy to send short-term interest rates through the roof.
Good news: 3-month rates have little effect on the deficit. Long-term rates can often go DOWN in response to short-term rates rising.
Scary news: If the long-term rates go below the short-term rates, banks lose money by lending money out, and will cause a credit crunch. In every case, this leads to a recession.
Terrible news: At best, the federal reserve seems to be the only organization left in the world ignorant of this fundamental rule of finance. At worst, they’ve deliberately caused whatever recessions we’ve had, when we’ve had them.
Ridiculous. If the Fed inverts interest rates, there will be a recession.
“What are the chances of Yellen/Obama tanking stocks in the next -30 days out of spite?”
The chances are zero. It’s not in their interest anyway.
I’ve never seen such hysteria over a quarter point raise, which is nothing. Go back and look at FED history.
That is funny. Gates said “Trump was like Kennedy” . I said “is that a threat”. That is your point. I wasn’t a Kennedy fan politically. I have concluded after study that he was a coward and traitor to the Cubans at the Bay of Pigs.He called off AIR SUPPORT!! He actually agreed with Kruchev to never invade Cuba to liberate those wonderful people from that communist bastard if the Soviets would please remove your NUKES!! Also he pulled our nukes out of TURKEY!! Absolute truth. Not what we heard from the NYT?
He had a family and I am sorry he was killed but he was a poor president. Now we have the greatest AMERICAN since George Washington!! ( as President!!)
.
Yes he was a mixed bag as President, but his tax cuts were what finally ended the “Great Depression” that the MSM had tried to do postmortems on so many times.
Rates are still microscopic. And it was only earlier this year that we were hearing of the possibility of negative interest rates.
This raise is on the shortest of rates, the Fed’s discount rate. On money that the Fed loans to commercial banks. It’s a means of controlling the growth of the money supply.
The broader savings pool, bond buyers at large, determine long rates as they bid at the Treasury auctions. The supply of T-bills and the inflation rate is a bigger factor here than the Fed’s discount rate.
I would think that after nearly 16 years of microcopic interest earned on savings that people would want to see rates come up some.
Doesn’t matter because Mr. Trump is going to repudiate all the debt created over the last eight years under an illegitimate president.
“According to the FED, it takes 6 months for a rate increase to work its way into the economy.” i don’t think that holds for short term rates. my guess is that in 2 months credit card rates will already be raised to reflect this increase.
The global cabal would rather SABOTAGE Trump's presidency than MAKE AMERICA GREAT AGAIN.
If the DemonRats can save themselves by SABOTAGING Trump's presidency, they would rather do THAT than MAKE AMERICA GREAT AGAIN.
They should all be treated as ENEMY COMBATANTS and thrown into GITMO.
Nope. They are a creature of statute. Statute!!~ Think about that.
Not really. Trump’s TECH, DEFENSE, SPACE, ENERGY, MORTGAGE/LOAN, INFRASTRUCTURE/INDUSTRIAL REVOLUTION II could make the post WWII economic boom seems like child’s play. The man is SERIOUS and everyone who’s met with him is convinced he is on a mission to MAKE AMERICA GREAT AGAIN, BIG LEAGUE.
We have a deep hole to climb out of. If anyone can do it it would be Trump.
I think it will be ok. I think there is so much pent up economic activity that has been waiting for a more favorable economic and regulatory environment that it will generate enough activity to blow past the relatively higher interest rates. It’s actually racist demand that has been waiting for the black man to get out of office to start up. /s
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