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Fed raises rates for the second time in a decade
cnbc ^ | 12/14 | cox

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 ...


TOPICS: Breaking News; News/Current Events
KEYWORDS: bho44; bhoeconomy; fed; federalreserve; fedrate; fomc; trumptransition
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To: trebb

I watch S&P futures. It flipped flopped red green etc..right now it is a little off after announcement lows. I went short when it went green and just waiting to exit here soon.


21 posted on 12/14/2016 11:55:14 AM PST by RummyChick (Trump Train Hobo TM Rummychick. Example - Ryan Romney Kasich. Quit trying to Jump on the Train)
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To: dhs12345

Wonder if they were holding rates low to make Obama look good?


For me, it was a foregone conclusion. But beyond that, it could have put us under so far that we’d pine for the days of the Great Depression.

And I think the effect will be the same now. We are a credit based society. The only thing that prevented Great Depression II was QE. And all that did was postpone it. We could finally see the end of the kicking the can down the road. If so, this is extremely relevant:
https://www.youtube.com/watch?v=VJEZh9PKr8s


22 posted on 12/14/2016 11:55:34 AM PST by Mr. Douglas (Today is your life. What are you going to do with it?)
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To: dhs12345

>>>No coincidence that a Trump will be president in a few weeks. /sarc

Wonder if they were holding rates low to make Obama look good?<<<

They were holding down rates 1) Because they could. 2) Because they doubled the debt and need to keep interests rates low.

If rates rise and the interests doubles, then what? Oh the left will try to paint Trump as being a bad president.

From an article in January of 2015: The interest payments alone are expected to hit $227 billion this year, more than double to $480 billion by 2019 and more than triple to $722 billion by 2024.

I believe this article is doing nothing more than forecasting a return to more historical interest rates along with increases in the debt. The interest will more than double in 4 years. But we can’t cut any programs to the left despite the fact that spending is unsustainable.


23 posted on 12/14/2016 11:56:33 AM PST by BJ1
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To: BJ1

Inflation, here we come.


24 posted on 12/14/2016 11:59:25 AM PST by Mr. Douglas (Today is your life. What are you going to do with it?)
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To: DoughtyOne

I’m talking to my stock adviser at this time. What are the chances of Yellen/Obama tanking stocks in the next -30 days out of spite?


25 posted on 12/14/2016 11:59:59 AM PST by Safetgiver (Islam makes barbarism look genteel.)
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To: RummyChick

I’m retired and into safe places for my funds - I see it dropped another 50+ points from a few minutes ago - kind of odd how it crawled back after the announcement and now heads down.


26 posted on 12/14/2016 12:00:13 PM PST by trebb (Where in the the hell has my country gone?)
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To: trebb

it flips flops a lot like a fish after announcements. One old timer pit guy (when they still had the pits) says don’t believe the first reaction after FOMC announcment.Of course, that was before the deep dark HTF network that front runs orders...and algos that look to move things just to make a penny.


27 posted on 12/14/2016 12:03:00 PM PST by RummyChick (Trump Train Hobo TM Rummychick. Example - Ryan Romney Kasich. Quit trying to Jump on the Train)
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To: Mr. Douglas

I realize that economics has been turned on it’s ear for quite a number of years, but raising rates always has tamped down inflation, even in the protracted period of “stagflation” in the seventies it eventually worked, rates had to be raised to a bizarre level in the early Reagan years to finally kill it off, though. It caused a short, but very sharp recession before we started to climb out of it and into the boom times everyone associates with the Reagan era. Right now, I don’t believe the US economy is strong enough to absorb rate increases, personally, it’ll end up killing sales of anything bought on credit which is just about everything above and beyond groceries these days. Not inflationary, I think it’s just the opposite. Deflationary, and we’ve been teetering for years. Some risk there.


28 posted on 12/14/2016 12:05:14 PM PST by RegulatorCountry
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To: RummyChick

A number of congress critters must have made lots of money because of their ability for insider trading.


29 posted on 12/14/2016 12:05:22 PM PST by 353FMG (AMERICA IS ALL THAT TRULY MATTERS)
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To: WENDLE

They probably engineered Harper’s loss to Trudeau. Alberta went NDP. The fed is the biggest threat to Trump

Http://www.forbes.com/sites/steveforbes/2015/10/20/why-justin-trudeau-owes-his-job-to-janet-yellen/#77e1a64a4d82


30 posted on 12/14/2016 12:06:32 PM PST by ari-freedom (Chicken Little Concerned for Trump people are almost as annoying as NeverTrumpers!)
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To: Safetgiver

Well, his team can’t stop insulting Putin. That may be your answer.

Obama is probably angry he got the pass off he got, and wants to return the favor.

The guy is the most spoiled child I’ve ever seen.


31 posted on 12/14/2016 12:06:37 PM PST by DoughtyOne (jcon40, "Are we be coming into the age of Sanity?")
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To: 353FMG

That law should be removed.

I sat there and watched it real time when Clinton pulled that stunt about the epipens. Turns out, someone made a large options order before the announcement.


32 posted on 12/14/2016 12:07:49 PM PST by RummyChick (Trump Train Hobo TM Rummychick. Example - Ryan Romney Kasich. Quit trying to Jump on the Train)
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To: Mr. Douglas

This raise has been expected since the summer time when they didn’t raise rates then.


33 posted on 12/14/2016 12:08:15 PM PST by mlo
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To: mlo

Yes. A lot of them were expected but I just considered it talk. They didn’t dare raise them because the economy was too fragile. and it still is. All they could do to stimulate the economy is “threaten” to raise them. i.e. borrow your money now before it’s more expensive.

I don’t expect this to go well. But I’ve been wrong before.


34 posted on 12/14/2016 12:12:32 PM PST by Mr. Douglas (Today is your life. What are you going to do with it?)
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To: WENDLE
You've been on fire; some really good comments.

Yes, the Fed is entirely political, with its consistent policy positions of ZIRP over the last 8 years designed to benefit one group: the banking entities that packaged and presented the muslim toady who tried to kill the USA.

One of the first initiatives Drumpf is going to have to undertake is an audit of the Fed. Perhaps Rudy will be in charge of all special prosecution activities, ranging from the Clinton foundation, to the Fed, and other insider special interests that came "just this close" to gaining permanent power.

35 posted on 12/14/2016 12:12:51 PM PST by semantic
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To: RegulatorCountry

I strongly agree. I meant DEFLATION. The first thing I thought was that soon I need to buy more junk silver.

I expect the collapse to be in this order: Deflation, followed by inflation, followed by hyperinflation.

Heck, I think the push for a higher minimum wage is to force price inflation.


36 posted on 12/14/2016 12:16:07 PM PST by Mr. Douglas (Today is your life. What are you going to do with it?)
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To: WENDLE
>

How? the Fed is a PRIVATE institution owned by member banks

37 posted on 12/14/2016 12:16:59 PM PST by SecondAmendment (Restoring our Republic at 9.8357x10^8 FPS)
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To: RummyChick

Please try to argue that the Federal Reserve is not a political enterprise.

8 years of Obama, $10 Trillion in debt, and one interest rate increase 30 days before he leaves office.


38 posted on 12/14/2016 12:17:17 PM PST by PGR88
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To: Mr. Douglas

This one was a near certainty. There was very little doubt left for a December raise.

It’s actually a good thing. Rates have been held low too long. There are negative consequences from that too.


39 posted on 12/14/2016 12:18:49 PM PST by mlo
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To: RummyChick

futures really tanking now. sigh..I am already of my short...oh well.


40 posted on 12/14/2016 12:20:33 PM PST by RummyChick (Trump Train Hobo TM Rummychick. Example - Ryan Romney Kasich. Quit trying to Jump on the Train)
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