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Dow declines after Fed increases rates and forecasts more hikes through next year
CNBC ^ | 12/14/2022 | Carmen Reinicke

Posted on 12/14/2022 11:22:11 AM PST by Tell It Right

The Dow Jones Industrial Average fell 140 points, or 0.4%. The Dow was higher by 287 points earlier in the day. The S&P 500 declined 0.7%, while the Nasdaq Composite lost 1%.

The Fed delivered a widely-anticipated 50 basis point rate hike at the conclusion of its December policy meeting. It’s a smaller bump from the prior four consecutive rate hikes of 75 basis points. A basis point is equal to one-hundredth of one percent.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: fed; fedrate; interest; rates; stockmarket
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Rate is now officially at 4.5%, the highest it's been since Oct 2007. I hope everybody enjoyed the easy-money stock gains of the past 15 years.

The Fed giveth. The Fed taketh away.

For historical perspective, see the rate as it's changed over the decades: https://www.thebalancemoney.com/fed-funds-rate-history-highs-lows-3306135.

For the changes in the official Fed statements see https://www.cnbc.com/2022/12/14/heres-what-changed-in-decembers-federal-reserve-statement.html. It's laughable how they blame the Ruskies for inflation. LOL

1 posted on 12/14/2022 11:22:11 AM PST by Tell It Right
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To: Tell It Right
0.4% drop on the Dow. Oh my word, the sky if falling!

Screw everyone who believes what the Dow shows is any indication of the economy. It's all money manipulation and gambling. Period.

2 posted on 12/14/2022 11:24:21 AM PST by CatOwner (Don't expect anyone, even conservatives, to have your back when the SHTF in 2021 and beyond.)
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To: Tell It Right

“Rate is now officially at 4.5%”

And some high-yield savings accounts and CDs are giving about the same.


3 posted on 12/14/2022 11:26:20 AM PST by steve86 (Prophecies of Maelmhaedhoc O'Morgair (Latin form: Malachy))
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To: Tell It Right

Inflation is 7%, according the government, and Fed Funds now 4.5%. That is still very negative rates which is a very, very long way from having a tight money policy.


4 posted on 12/14/2022 11:26:46 AM PST by rigelkentaurus
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To: CatOwner
"Screw everyone who believes what the Dow shows is any indication of the economy. It's all money manipulation and gambling. Period."

True that. And also as an indication of the stock market (not to be confused with the economy), I don't like the DOW anyway. It's only 30 companies. I'd prefer to look at the S&P 500, which I believe is down 17% from its ATH in January.

5 posted on 12/14/2022 11:26:57 AM PST by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: Tell It Right

The stock market IS A CASINO.


6 posted on 12/14/2022 11:29:04 AM PST by CivilWarBrewing (Get off my back for my usage of CAPS, especially you snowflake males! MAN UP!)
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To: Tell It Right

Do you think they should ignore inflation? Cheap money got us into this mess.


7 posted on 12/14/2022 11:30:30 AM PST by nickcarraway
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To: Tell It Right

Noting that there has been a LOT of chatter recently regarding CDBC - we are getting closer and closer to this as a financial reset looms.

When it happens, it will happen all at once - a shock, a crisis. And then a new currency will be born, the old fiat replaced.

The old debts will still be there, however, they will wither on the vine.

$31T and 90T total in government debt, will be no more.


8 posted on 12/14/2022 11:31:10 AM PST by C210N (Everything will be okay in the end. If it’s not okay, it’s not the end.)
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To: nickcarraway
"Do you think they should ignore inflation? Cheap money got us into this mess."

Agreed. If I had my way they would have hiked rates and done more QT a long time ago to reduce inflation. (I wish I could find details on any QE/"not QE" decisions they made.)

I'm just saying to everybody who thinks they're a totally awesome dude investor because they started some time in the past 13 years -- it's time for a life lesson.

9 posted on 12/14/2022 11:33:14 AM PST by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: Tell It Right

They won’t be happy until all of our children are unemeployed and living in the basement.


10 posted on 12/14/2022 11:34:19 AM PST by central_va (I won't be reconstructed and I do not give a damn...)
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To: steve86

5 year fixed rate annuities are now over 6%. I am still waiting to jump in.


11 posted on 12/14/2022 11:35:40 AM PST by natalie227
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To: Tell It Right

Printing money got us into this mess.


12 posted on 12/14/2022 11:38:10 AM PST by central_va (I won't be reconstructed and I do not give a damn...)
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To: natalie227
One trend I'm watching is the S&P 500 is taking a loooonnng time (since it topped out 11 months ago in January this year) to drop 17%. Historically that usually means it has further to go (i.e. 49% drop starting March 2000 took 2 and a half years, 56% drop starting October 2007 took 1 and a half years). So I'm staying out too.

One way I made nice coin in 2020 is because I saw it drop 30% in 2 months. I was out expecting a 40+% drop, but in March when I saw that it had dropped quickly like it did in 1987 (dropping 30+% in a few months) I jumped back in to catch the rebound.

13 posted on 12/14/2022 11:42:56 AM PST by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: Tell It Right

Good thing it’s just transitory.


14 posted on 12/14/2022 11:44:00 AM PST by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money)
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To: Tell It Right

Tellitright: If I had my way they would have hiked rates and done more QT a long time ago to reduce inflation.

Economist were warning the Fed should have started raising the interest rates in slow increments back in the mid 2000’s.
Now we are paying the piper.


15 posted on 12/14/2022 11:46:37 AM PST by natalie227
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To: Tell It Right

Is The Dow Jones happy with Biden’s new Digital Dollar ?


16 posted on 12/14/2022 11:48:47 AM PST by butlerweave
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To: butlerweave
Interestingly, the Shiller PE Ratio is still 13% higher than the 20-year average. https://www.gurufocus.com/shiller-PE.php

Stawks got a ways ta go down some more.

17 posted on 12/14/2022 11:53:18 AM PST by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: C210N

So treasury bonds will be worthless?


18 posted on 12/14/2022 12:25:30 PM PST by gloryblaze
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To: natalie227

Five years seems so long looking forward... but so dang short looking back.


19 posted on 12/14/2022 12:29:04 PM PST by gloryblaze
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To: gloryblaze

Some things will convert, some things won’t.

There are numerous (I saw two yesterday), YT discussions on this. Very interesting, giving nuts and bolts on how this might work.

Look up Clive Thompson...

The Currency Reset Will Wipe Out Creditors and Usher in CBDCs. Part 1.


20 posted on 12/14/2022 12:44:39 PM PST by C210N (Everything will be okay in the end. If it’s not okay, it’s not the end.)
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