Posted on 09/21/2022 11:53:10 AM PDT by ConservativeInPA
The Federal Reserve on Wednesday raised its benchmark interest rate by 0.75 percentage point and signaled it plans to keep rates higher for longer as it tries to douse red-hot inflation.
The Fed's target interest rate is now in the range of 3% to 3.25%, the highest level in 14 years. The bank's rate-setting panel also projected that the Federal Funds rate would hit 4.4% by year-end, up sharply from a projection of 3.4% in June, and 4.6% in 2023, up from a previous estimate of 3.8%.
(Excerpt) Read more at cbsnews.com ...
Federal Reserve of Atlanta GDPNow
As of now, they're tracking a 0.3 growth rate for Q3, but not the direction of the graph. There's still 10 days of the quarter left, and it will be weeks before all the numbers are in. This could be the 3rd consecutive quarter of negative GDP growth. It will be harder to fight off the cries of recession, but they will give it a good run.
They should have done that 200 basis point rise back in February. This incremental approach is for the birds.
We need to get restore our republic first.
Without getting into whether or the Fed should even exist or what the Fed should do, this is one quality I like about Powell. His predecessors did a bad job of projecting ahead of time what the Fed would do. That's why usually on days like today when the Fed announced a new policy, the stock market used to jump up or down more than AOC does in glee when a baby is aborted. I always suspected more insider trading in those scenarios. At least with Powell's good way of getting the word out ahead of time, the stock market has small jumps on days like today (because we all knew the 0.75% rate hike was coming, just like Powell's statement today tells us what's probably coming down the road).
Did anybody see a statement from the FOMC about more QT?
Read an article the other day that said “Real Interest rates” (interest rate less inflation rate) remain negative and inflation will not cool until interest rates exceed the inflation rate, which is now up over 8%.
The Commie Rats are attacking we the people every way they can.
“Essentially, the government found a way to spend trillions of dollars in Keynesian spending without actually producing anything, but also without requiring legislative authorization.”
Nice work if you can get it.
You’re right, because they are hiding the real inflation rate. Reagan era used an old formula.
“The Fed can only affect monetary policy, but that alone does not fix the economy. Powell refuses to say that government spending has to be cut. He won’t say regulatory, energy and trade policies need to be changed.”
He’s not supposed to, he is to stay silent on that. Separation of powers. And the President/congress isn’t supposed to tell him what to do either.
Most people here apparently weren’t around during Volker’s day. They wouldn’t have survived.
“And....... the stock market is up. I should not trade at all.”
The stock market has rallied on every day the FED has made a move for years.
Neat. But completely wrong.
“The way to cool inflation is to stop the federal reserve’s asset purchases,”
The FED is doing quantitative tightening right now, selling off those bond purchases. It’s not being talking about but that’s having more effect than the .75% raises.
Well, remember, didn’t they change the definition of a recession, so that the media wouldn’t say we’re in a recession????
Trump made a whole bunch of bone headed picks for cabinet and other positions.
^^^^ This ^^^^
Is this like seeing the cattle get through an open gate and deciding the answer is to build a new barn?
Inflation has been caused by biden screwing up the fuel prices. That is the main reason everything is costing more. Raising interest rates will do nothing to solve that problem.
(It’s all a part of the Great Reset)
It’s hard to believe that it’s not by design. They’re going to inflate us into Depression II.
(These people think the general public is downright moronic)
2008 conclusively proved that to be correct.
Unfortunately.
Jimmy Carter all over again economically, only this time on
steroids.
2008 was the best opportunity out of all the recessions I’ve been through. I retired from active work in 2007 and doubled my net worth by the time Obama left office.
I’m not expecting anything like that this time, but there will be good opportunities.
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