Fed hikes rates, points to two more increases by year's end

CNBC ^ | 13 JUN 18 | Jeff Cox

[Dacula]

I just closed on my re-fi last week (finalized yesterday)

I got 3.89% on a 15 year loan and killed my PMI which was nearly $500 per month. I now have credit card debt of less than $6,000 with 0% interest rate until April of next year and plan to be debt neutral by the end of the year.

All of this after losing my wife last year and having NO debt from her medical bills after she fought cancer for over 8 years. Each hospital stay was billed at nearly $500k and she spent over 3 months in the hospital before she passed away.

[VeniVidiVici]

And how many times did the Fed raise rates under Obama? Oh ya. Zero.

A monkey can grow an economy even an eintsy tinsy bit but having zero rates.

[DaughterofEve]

I’m so terribly sorry for all you’ve all been through.
It’s very good that you have taken such timely steps to improve your finances.

[fortheDeclaration]

The economy is growing, there is no danger of a recession.

The recession would come from inflation caused by the FED's easy money policy for 9 years and then a hike which would trigger a recession.

[DoodleDawg]

The economy is growing, there is no danger of a recession.

Not immediately, but one will come sooner or later. It's inevitable.

The recession would come from inflation caused by the FED's easy money policy for 9 years and then a hike which would trigger a recession.

Probably not from that.

[fortheDeclaration]

Yes, the increase on the money supply, artificially low interest rates, is what causes recessions (depressions).

The FED is responsible for the cycle of inflation and depression.

[DoodleDawg]

Yes, the increase on the money supply, artificially low interest rates, is what causes recessions (depressions).

Economists generally define a recession as a fall in aggregate demand that causes negative growth for at least two consecutive quarters. There are a number of reasons for the fall in demand. Interest rates are only one.

[fortheDeclaration]

The boom-bust cycle (that you claimed is inevitable) is caused by inflation, which is the responsibility of the FED.

For demand to fall on a national level would be due to a national cause, the artificially low interest rates giving the false view that there was more demand in the economy then there was.

[DoodleDawg]

The boom-bust cycle (that you claimed is inevitable) is caused by inflation, which is the responsibility of the FED.

It's caused by a lot of things. If the Fed was solely responsible for recessions then they would be able to prevent them as well.

[fortheDeclaration]

No, because they are the source of them by creating a money supply.

They could stop the cycle by simply letting the market determine interest rate.

[DoodleDawg]

They could stop the cycle by simply letting the market determine interest rate.

The market does. Fed rate is only part of what they use to determine interest rates.

[Dacula]

Thank you. I have tried to channel my energy while focusing on my family and our future.

I miss her everyday, but she suffered so much in her mortal body and now she is pain free.

Hopefully she will put in a few good words with St. Peter.

[fortheDeclaration]

No, they distort the market by keeping interest rates artificially low, which leads to investors to think there is greater demand then there actually is.

[RipSawyer]

Yes, I was averaging about seven percent annual wage increases as a tech rep and I had great benefits but every year under Carter I wound up worse off. The money I had thought was enough to see me going up the ladder wound up being the money I could barely live on. I think the peak year for working people was around 72. I started my own business in 82 in a desperate attempt to make some progress, it was the smartest thing I ever did but I had an opportunity that few people have.