After Fed Raises Interest Rates Wednesday, Investors to Look for Clues About What’s Next

WSJ ^ | July 26, 2022 | Nick Timiraos

[unclebankster]

“The FOMC meets three more times this year. I suspect that rates will be increased but at a lower number of points than tomorrow’s jump will be.”

DoodleDawg,

You’re financially astute.

Do you have a prediction on the rate increase tomorrow?

I’ll go with 1% hike on Wednesday, and three 1/2 percent hikes to finish off 2022.

[usconservative]

The Fed is likely to raise its federal-funds rate by 0.75 percentage point, to a range between 2.25% and 2.5%, at this week’s meeting

If the Fed doesn't raise interest rates by AT LEAST 100 basis points, they're not serious about tackling inflation, period.

[Mariner]

The Fed doesn’t have the fortitude to do what is necessary to save what’s left of the US economy.

[Robert A Cook PE]

50 cents interest on a 14,000.00 account on a savings account. Does that even count as income?
But the IRAs lost money.

[SaxxonWoods]

“My savings account is with a major bank. The interest rate h”asn’t budged. It’s still 0.01% (not a misprint). CD’s might pay double that. Big deal.”

That’s crazy. Brick and mortar banks are for checking accounts. I’m getting 1.15% on liquid money at Ally Bank.
3 month T-bills at about 2.50% (annualized) aren’t bad either considering no tax bite.

[Revel]

If all the money the government has borrowed was charged 10% interest then the country would be way more than belly up.

[DoodleDawg]

Do you have a prediction on the rate increase tomorrow?

I'll go with the consensus - .75%.

I'll agree with the three additional increases. The .5% seems reasonable now but the last one or two increases could drop to .25% depending on how things go.

[JimRed]

When will my savings account payout rise in response?

[Repealthe17thAmendment]

While the FED rate change has some historical precedent, which gives us some predictability, we really have no idea what's going to happen as they take steps to reduce their balance sheet.

Starting last month, the FED quit rolling over their Treasuries back into the government debt. Their plan is to reduce their holding of government debt by $1trillion per year.

It might just bury the bond market. And crash the US treasury. If they don't blink first.