Posted on 11/02/2022 11:11:15 AM PDT by ChicagoConservative27
The Federal Reserve on Wednesday hiked interest rates by three-quarters of a percentage point, pressing even harder on the brakes of the economy in a scramble to slow inflation.
The Federal Open Market Committee (FOMC), the panel of Fed officials responsible for monetary policy, boosted the central bank’s baseline interest rate range to a span of 3.75 to 4 percent. It is the fourth consecutive 75 basis point hike issued by the Fed and sixth interest rate increase since March.
(Excerpt) Read more at thehill.com ...
Based on what happened during the late 70s, this Fed is still way behind schedule on rate hikes. Some monetary rules would require rates to be at least double the current target.
Let me see, inflation is over 8% a year, Fed Funds Rate is 4%, so short term real, after inflation, rates are still deep in negative territory.
> Trump did what he could to reduce expenses. <
I suppose it would have been worse without him. But just like with every president before him, the deficit went up, up, up while he was in the White House.
Don’t get me wrong. Not just some, but most of the blame goes to Congress. But Trump was not a disinterested observer. He was part of the process. He (or DeSantis) has got to do better next time. We will never get a handle on this problem if we always hold our favorites blameless.
Oil is over $90 again...
Yup—the fed will have to keep raising interest rates until either they get significantly above the inflation rate or crash the economy, whichever comes first...
Otherwise the inflation brush fire will re-ignite stronger than ever...
2023 will be a recession year and will very much shape the landscape for the 2024 Presidential race.
you if you own assets that appreciate like homes or real estate, it will be great. And later when interest rates top out, it will be great for people with cash in the bank earning interest.
I could care, our democracy is being threatened by having a democracy. Joe Biden to speak on this crucial issue later tonight.
No......it’s here.
.5 basis points makes more sense IMHO.
Another million and a half votes for us.
The dems will in turn need to create 2 million votes...exhausting.
But big media won't talk about it.
...unless Republicans take House and/or Senate.
...then THEY'LL get ALL the blame.
...setting the narrative for election 2024.
I guess you are right I must be using Janet Yellen’s talking points.
In Canada the finance minister told an auto industry meeting the other week that the economy in Canada and US is going to slow down while prices will still go up.
Trillions and trillions have been thrown at the covid wall and handouts. The Fed is almost powerless against such actions.
So, the Fed prints money we don’t have to pay for spending we don’t need, increasing the national debt.
Then, the Fed raises interest rates so the money we “borrowed” for the spending that we don’t need costs us more.
Brilliant!
This isn't a political problem. It's an inevitable course of events with any democratic system. Almost any political candidate who runs on a campaign of fiscal austerity is going to get his ass kicked on Election Day.
if we believe in capitalism, when will our savings interest rates start inflating?......if interest rates for borrowing go up so wildly, our savings rate interest should be going up/
Way too little too late.
> This isn’t a political problem. It’s an inevitable course of events with any democratic system. <
Good point. The Founders were aware of this, and so they the devised a Senate that was not chosen by popular vote. The Senate would act as a brake.
Then came the 17th Amendment. No more brake.
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