The Fed needs to STFU. Things are fine, or were, stop tweaking.
I’m POd that these guys covered for Obama by their low interest and spending policies propping up the market.
At the same time, it is crazy to keep up that policy and create a fake market.
My guess is that the President approves of their getting back to reality.
Good. Free money is no way to encourage responsible behaviour.
Well, that will take care of the housing market.... POOOF.
So why announce this?
This is crappy news for those of us who are desperate to sell our old home and get a mortgage on a home in our new work location... made even worse by the necessity to get the old house sold FIRST...
And as others have posted - “if it ain’t broke, don’t “fix” it”... economy is moving well, inflation is still not significant. Ugh
When a clear, soft moderate like Powell talks 4 increases in a year...you know we’re overdue.
This is the clearest indicator that debt deflation has been defeated and raucous inflation is on the horizon.
And now is the time to position for it.
Borrow money, buy houses. And farms. And anything real.
There goes our bond index funds in retirement this year, at least with the net asset value ...
Interest rate on my credit card has already climbed the past two months so not glad to hear this news. Hassle to transfer balance to another card but may be necessary this year.
Don’t make many purchases but did put a couple of large ones on the card. Won’t do that anymore.
Two 25 basis points would be enough.
See Fred and analize the data.
And no, I’m not going to explain my position unless you pay money.
5.56mm
“At the December meeting, the median [FOMC] participant called for three rate increases in 2018,” Powell said. “Now since then, what we’ve seen is incoming data that suggests a strengthening in the economy.”
...
And the Fed can’t allow that. I was hoping Trump would pick somebody different than the usual rate hiker that blames inflation on prosperity.
That’s what they said about last year. Did they do it?