Posted on 03/09/2022 9:28:44 AM PST by SaxxonWoods
Consumers may soon see the most aggressive Federal Reserve in decades.
Expectations are growing that the U.S. central bank will hike interest rates this year by the most since 2005 as inflation hits a 40-year high. How much depends on who you ask: Goldman Sachs is penciling in seven increases, while traders are betting on at least six, according to CME Group's FedWatch.
Travels World Tour Ad Ad travelworldtourism.com Travels World Tour Fed Chair Jerome Powell at a March congressional testimony also opened the door to a massive half-point increase if price pressures don't settle down, which would be the biggest single rate hike since May 2000.
To make 2022 an even busier year for Fed policy, a number of officials expect to start shrinking their massive portfolio of nearly $9 trillion in bonds by sometime later this year, according to records of the Fed's January meeting.
The ultimate risk, however, is that the U.S. central bank does more harm than good to an economy that's already experiencing its worst inflation since 1982.
(Excerpt) Read more at msn.com ...
I'd be raising in line with what the expectations are at this point.
A friend of mine insists that they can never be raised that much or we are cooked.
Well done or very well done?
The US Congress Hacks have created so much debt that they cannot afford to raise interest rates more than a point or two, and consequently, we will be in deep merd soon with inflation way way WAY out of control...
1% tops. Inflation remains.
“A friend of mine insists that they can never be raised that much or we are cooked.”
I’ve heard that claim. Bernanke got in trouble with 7 quick raises during his time. He just backed them off when he saw what was happening and it worked out.
I have a bass amp that will do that! It’s fun. 2,000 watts, stand back!
A couple points. Our debt will quickly become unserviceable, they don’t have much room to work with here. I imagine the plan is to acquire assets with inflato-bucks. Then at some point make a transition to reset the clock.
“1% tops. Inflation remains.”
Reasonable. But then, we don’t want deflation, so some inflation remaining is a good thing.
You are pretty close. My guess is 3 rate hikes of 1/4%.
Inflation is going to hurt working middle class the most.
Seniors like me received a “hefty” haha raise of 7% in social security. That 7% will be eaten up 3 times over by inflation everywhere.
The root cause of all this fiasco is OVER-SPENDING.
I’ve seen that claim a lot. You say a point or two.
There’s a vast difference between a point or two.
6 raises would be 1.5 points. The Fed will watch the effects of its raises and stop when they think they should. I’m good with it.
“The root cause of all this fiasco is OVER-SPENDING.”
Yes, and the FED has been telling the govt that since Bernanke.
Maybe higher loan service costs will squeeze the spenders a bit.
Yup. Raise it to 5% and basically all the income of the US government is needed to pay interest on the debt.
That’s not happening.
Slam on the brakes! Hike it to 4%. I’d go back to buying T bills. Gets me some of my outrageous taxes back.
US govt has legal money printing machine. They can print as much as the socialists want to send it to the non-working.
“massive half-point increase”
The current fed reserve interest rate is 0%. Going to .5 would be a truly massive increase.
Nah...spending is like addiction to heroin. The feeling of power and euphoria is extremely addictive. The PTB will just print more.
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