Posted on 12/14/2016 11:32:55 AM PST by RummyChick
Federal Reserve officials, amid signs that the U.S. economy soon could shed its long period of stagnation, approved the first interest rate hike in a year Wednesday and said it foresees three more increases next year.
The stock market reacted calmly, while the dollar and bond yields rose.
(Excerpt) Read more at cnbc.com ...
Oil is my achilles heel. I went long for the rest of the week or maybe just tomorrow.
Lord help me..I will probably lose !
The Fed kept the rates from increasing to get Hillary elected.
I think that’s why they lowered the unemployment numbers to 4.6. That’s really low and only really one way to go is up. They did that to screw with trump.
Wonder if they were holding rates low to make Obama look good?
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Of course they were. Pretty obvious.
Now, all of a sudden, they’re talking about three rate hikes in 2917 despite nearly 100 million people dropping out of the workforce.
The Fed is highly political. It’s an enabling mechanism of the DC Cabal. I hope Trump finds a way to dump her.
A soaring economy would make Obama look very bad and might well destroy Democrat political prospects for many years to come, if not decades. So Yellen will do everything she can to prevent a resurgence of the economy. She cannot allow Trump to succeed.
They were holding rates the lowest ever near zero to prop up Obama house of cards economy (no manufacturing). I knew if Trump won they would raise rates This is what the Fed did to W Bush to get barrack in 2006 and the “great” depression to get socialist FDR in.
The Fed is the greatest threat to our free society.
Trump has to get rid of Yellen
The fed is the biggest threat to Trump
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After the GOPe. Trump is going to have epic battles with them over the next four years.
In deflation, precious metals will likely decline in monetary value just as everything else does. Good time to buy if you believe the pendulum will swing wildly back, though. Buy low, sell high.
This raise has been expected since the summer time when they didn’t raise rates then.
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They didn’t want to hurt Hillary’s chances so there was no way there was going to be a hike until after the election.
First thing I would do related to jobs, is document exactly how many working age able bodied people we have sitting idle.
They should always be counted in the labor report.
There has got to be a way to do it.
Then we start addressing real facts and figures from here on out.
I figured the political organization would try to spite him. That may not be the reason they did this, but I think it is a major part of it.
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Totally agree. This hike could, and should have, come a long time ago. It’s clearly a “first strike” political decision designed to stifle Trump’s agenda to get the economy moving again. Yellen’s glowing comments about employment were absurd and betrayed her true motives.
I'd be all in favor of an executive order rescinding this odious exemption. I'd be all in favor of an EO that required all Federal elected officials and federal employees be fully subject to every law and regulation to which the private sector is subject, myself. Enough of this privileged class federal nonsense.
The Fed is the greatest threat to our free society.
Trump has to get rid of Yellen
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Agree on both accounts.
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This is a very much expected shot at Trump.
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>> “The FED is political and will need to be gutted.” <<
The last guy to try that took a coffin dive in November of 1963.
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do not forget the unemployment rate will jump to 14.3% on March 1st
It seems the markets really tanked after she announced more planned hikes for next year. What did she say, three more next year?
This hike was a long time coming and people were expecting it, but I wonder if they were expecting the announcement of several more to come next year?
According to the FED, it takes 6 months for a rate increase to work its way into the economy. Immediate market reaction is meaningless, the market knew this was coming.
What this means is the FED is looking for higher growth under Trump than Fidel Obama.
The FED’s forecasts for the next two years are meaningless. Just take a look at their forecasts of the last two years.
They will see what happens and react, which is what they do. The illusion that they lead is just that, an illusion.
Also, a .25% raise is very small. When I was selling real estate about 20 years ago I went to bed one night with a couple of deals dependent on loans. People were “floating” hoping for a better rate. The next day the FED raised rates 1 full percentage point, and mortgage rates went from about 7 to about 8% overnight. That’s what happens in a hot economy. The FED was WAY behind the curve that time.
I sold MRO and XOM two days ago, kept other higher dividend oils.
What’s happening in markets now is meaningless, different investors with different goals and holdings are reallocating. No one is surprised today and a quarter point raise is timid, more show-prep than go-go.
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