Fed Raises Rates Another 50 Basis Points—Signals More Hikes To Come Next Year

Forbes via MSN ^ | December 14, 2022 | Jonathan Ponciano

[ConservativeInPA]

The Federal Reserve on Wednesday eased up on its most aggressive economic tightening campaign in three decades, raising interest rates by 50 basis points (after four consecutive three-quarter point hikes) as signs abound that the economy is slowing down enough to help cool the nation's stubbornly high inflation.

Key Facts

At the conclusion of its two-day policy meeting on Wednesday, the Federal Open Markets Committee said it would raise the federal funds rate (the rate at which commercial banks borrow and lend reserves) by 50 basis points to a target range of 4.25% to 4.5%—the highest level since early 2008. In the announcement, officials said ongoing increases "will be appropriate" in order to help bring inflation down to the Fed's target level. The decision comes after data on Tuesday showed inflation grew at the slowest pace since December last month, climbing 7.1% on an annual basis despite economists expecting a reading of 7.3%.

[ConservativeInPA]

Our economy is being run by morons. I have been saying for months to hike interest rates significantly one time and get this pain over with. Powell signaled that rate hikes will continue through 2024. As always, Powell did not mention the other things that need to occur to fix inflation and the economy, primarily cutting government spending.

Two weeks from now, the Inflation Reduction Act spending begins. You can fully expect a rebound of inflation by the beginning of the 2nd quarter.

[bray]

Thank you Joe Biden for the second Great Depression.

[StrictConstructionist]

Inflation cannot be controlled by government spending!

Raising interest rates just hurts the overall economy. Raising interest rates makes the borrowing by government at all levels more expensive.

Seems those in power are doing their best to collapse the world economy and destroy nations.

[OHPatriot]

More like “Thank You to the 81 Million Biden Voters”

Hope you are happy, because by the end of this you will own nothing and some bald headed Kraut says you will be happy because you own nothing. Biden is just a Happy Retard who already owns all kinds of stuff because of 10% to the Big Guy!!!

Thanks Again you 81 Million FOOLS!!!!!

[ConservativeInPA]

Thank you Joe Biden for the second Great Depression.

Biden won’t even admit there is a recession. The federal deficit widened to an all time record of $249 Billion last month. That’s month, not quarter, not year. That figure is not only the result of spending. Tax receipts are down this quarter. That means that business activity is down. Government is spending nearly a quarter trillion per month that it doesn’t have. Total spending is even higher. That spending results in too many dollars chasing too few goods - inflation. The Fed will dutifully mess with its balance sheet to benefit Big Banks and print money to make Americans poor.

Wall Street knows what is occurring and what’s ahead. They are cutting employment. That will come to a neighborhood near you soon. Note: quite honestly, I think that government is manipulating the unemployment report. The delta between ADP’s and BLS’s reports last week cannot be rationalized. We are heading for high inflation and high unemployment.

[Amendment10]

Thank you for referencing that article ConservativeInPA. Please note that the following critique is directed at the article and not at you.

"Fed [??? emphasis added] Raises Rates Another 50 Basis Points—Signals More Hikes To Come Next Year"

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FR: Never Accept the Premise of Your Opponent’s Argument

The delegates to the Constitutional Convention had expressly constitutionally given Congress full responsibility for regulating the value of money.

• "Article I, Section 8, Clause 5: To coin Money, regulate the Value thereof [emphasis added], and of foreign Coin, and fix the Standard of Weights and Measures;"

• "Article I, Section 10, Clause 1: No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts [emphases added]; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility."

And since activist President Woodrow Wilson wrongy ignored first leading Congress to successfully petition the states for an appropriate amendment to the Constitution before establishing the still constitutionally undefined, non-popularly elected Federal Reserve, the very corrupt, post-17th Amendment ratification Congress must still take full responsibility for the value of money whether it wants to or not imo.

[frogjerk]

The Fed is meant to take care of the supply of money - not fix interest rates.

[frogjerk]

Two weeks from now, the Inflation Reduction Act spending begins. You can fully expect a rebound of inflation by the beginning of the 2nd quarter.

It doesn't happen that fast. It will take about 12 months to 18 months to feel the effect.

[unixfox]

This is what they call a “Soft Landing.”

[neverbluffer]

Not to mention “millions” of new people in the country through the border who wind up getting $$$ and then spend contributing to inflation, higher prices, and product shortages.

[lurk]

First time home buyers are getting shanked.

[ConservativeInPA]

First time home buyers are getting shanked.

From multiple angles. Inflation and interest rates. The problem is superficially simple. There’s too many dollars chasing too few goods. The dollars need to be removed from the economy. Hike interest rate very high, one time. That cuts off borrowing and removed some of the dollars. Massively cut government spending. That removes more of the dollars. Last month alone, government spent $249 Billion that it didn’t have. That’s was only the deficit, it spent even more than that.

If things are not changed quickly, this poor economy will get worse and it will stay that way for years. This is the 1970’s on steroids.