Posted on 06/16/2021 11:41:37 AM PDT by Oldeconomybuyer
WASHINGTON (AP) — The Federal Reserve signaled Wednesday that it may act sooner than previously planned to start dialing back the low-interest rate policies that have helped fuel a swift rebound from the pandemic recession but have also coincided with rising inflation.
The Fed’s policymakers forecast that they would raise their benchmark short-term rate, which influences many consumer and business loans, twice by late 2023. They had previously estimated that no rate hike would occur before 2024.
In a statement after its latest policy meeting, the Fed also said it expects the pandemic to have a diminishing effect on the economy as vaccinations increase, thereby allowing for more growth.
The central bank raised its forecast for inflation to 3.4% by the end of this year, from 2.4% in its previous projection in March. Yet the officials foresee price increases remaining tame in the following two years. That outlook reflects Chair Jerome Powell’s view that the current inflation spikes stem mainly from supply shortages and other temporary effects of the economy’s swift reopening from the pandemic.
(Excerpt) Read more at apnews.com ...
But you will need to have income that increases in those bogus dollars. If you lose your income, you are in big trouble.
But you will need to have income that increases in those bogus dollars. If you lose your income, you are in big trouble.
The assumption is that you have that income. Otherwise, nobody would be selling bread. :)
Usury kills.
Slowly at first, then all at once.
This was a ‘given’. Always when the woke elect Democrats.
“Borrow all the money you can now on a low fixed rate and as long term as possible”
I was just debating if I want to pay off a loan or not. Cash is in the bank. I wonder how long before we see higher interest paid on bank accounts.
The current low interest rates on savings result in a loss of money. The piddlingly low rate of interest is a joke. And the interest is taxable even though your money has lost value.
“If the Fed raises them at all significantly the crash will be epic.”
100%
What will the interest payments on the national debt be?
I have been preaching it. The red states had better secede or they will drag us all dole the hole.
We are on a national debt event horizon.
Any significant rise in interest rates will have a major impact on the budget deficit (interest payments) and then we start paying interest on interest on interest...
A black hole—no escape.
100%
What will happen is the bonds will collapse and then we become like the Weimar Republic.
Start printing treasury notes backed by precious metals. Let the Fed currency collapse.
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