It’s actually a good thing. Rates have been held low too long. There are negative consequences from that too.
We should have had a lot more price inflation, but the only thing that actually inflated was the stock market. And now, with a very weak economy, interest rates are increased. At a time, I might add, where there is a lot of credit already out there. I saw low rates coupled with QE as kicking the can (total economic collapse) down the road. I see any significant rate increase as flirting with finding the end of the road.
Oh, and I refinanced my home and property two months ago in anticipation of this. So yeah, I kinda saw it coming myself. It’s because it was a foregone conclusion that Trump would win and I figured the political organization would try to spite him. That may not be the reason they did this, but I think it is a major part of it.
“the economy is not as strong as they say it is and a rate increase will damage “
A primary reason the economy is not strong is that the rates are artificially kept low. Who the heck wants to invest in a zero return market??
Definition of insanity is doing the same thing over and over again (keeping rates low) and expecting different results (economy getting better).
I figured the political organization would try to spite him. That may not be the reason they did this, but I think it is a major part of it.
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Totally agree. This hike could, and should have, come a long time ago. It’s clearly a “first strike” political decision designed to stifle Trump’s agenda to get the economy moving again. Yellen’s glowing comments about employment were absurd and betrayed her true motives.