Posted on 06/15/2022 5:57:45 AM PDT by John W
The Federal Reserve on Wednesday is expected to do something it hasn’t done in 28 years — increase interest rates by three quarters of a percentage point.
In response to soaring inflation and volatile financial markets, the central bank will hike the rate that banks charge each other for overnight borrowing to a range of 1.5%-1.75%, where it hasn’t been since before the pandemic crisis began.
That rate feeds through to consumer borrowing, impacting virtually all adjustable-rate products such as credit cards and home equity loans.
Along with the rate increase, here’s a quick look at what the Fed also likely will do:
Adjust its future outlook for interest rates via its “dot plot” of individual members’ expectations.
Update its outlook for gross domestic product, inflation and unemployment. Economists figure the Fed will decrease its expectations for GDP this year while raising forecasts for inflation and the unemployment rate.
Change the language in its post-meeting statement to reflect current conditions, namely that inflation is running at a faster pace than anticipated, requiring more aggressive actions to contain price increases running at their fastest level since December 1981.
Goldman Sachs said new language in the statement could indicate that the rate-setting Federal Open Market Committee “anticipates that raising the target range expeditiously will be appropriate until it sees clear and convincing evidence that inflation is moderating,” implying a high bar for reverting to [25 basis point] hikes.”
(Excerpt) Read more at cnbc.com ...
If they stay with that, they're indirectly saying that they're either not serious about fighting inflation, or if they are serious about it then they plan to keep hiking interest rates bigly.
The economy is the best it’s been in decades.
...Joe Biden
Well, to be fair potato head calls it the “conamy” so all bets are off as to what the heck he is babbling about.
The .75 points wont do squat
I refinanced a year or so ago at 2.5%, I’m good
Squinty eyed Joes ship is going down in flames, glub glub
It needs to be around 2.5 basis points to have an impact. But that would be Lehman all over again.
They’ve already wrecked the economy. They’re just trying to get Uncle Fred to tow it away before the cops get there.
Which ever republican wins in 2024 must without delay fire every dem appointed agency head and replace them with solid conservatives. Can’t trust any of them. The FBI, or rather the BBI (Biden Bureau of Investigation), must be completely removed and taken over by Homeland.
We’re about to see a huge split in the country between those who have home equity and those who don’t. Previously, the huge spike in home values was regional but now it’s most everywhere from what I see. A huge percent of the population will be totally unable to afford a home. That will of course push prices down a bit of but they won’t be going back to pre bubble prices due to inflation, energy policy, corporate investment in SFH, etc.
Having lived through the Ford-Carter Stagflation of 1974-1982, I can see that there is a lot of side effects that many haven’t considered. Government expenses are going to skyrocket at all levels! The biggest borrower in the world is the US Government and that expense is going to bleed. Add the increases that will come for Medicare/Medicaid, Social Security and the various welfare programs that are already known to be in trouble! Then add state pension shortfalls and their financing!
Remember to thank the ‘D’onkey Party and their RINO allies! Anybody ready for a new version of “WIN” badges and advice on wearing sweaters and how to handle the national malaise?
Don’t forget apartment rents are just about equal to a mortgage payment. You will OWN NOTHING and be happy. Where have we heard that crap before?
Copy Jimmy Carter! Initiate another stagflation!
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Never thought we would get a president worse than Carter.
0.75% is spitting in the wind against the printing press of Brandon Bucks.
Well it’s a cabal worse than Carter. Biden doesn’t know what day it is.
Bigger depression flag hoisted Biden gives bow.
Mortgage rates are at 6.2%, which is progress. Fed funds rate has got to exceed the inflation rate, which they are jawboning as around 10%. Real figure is likely close to double that.
However, the real issue is that the price of a gallon of fuel - diesel and gas - has to start dropping or its not going to matter how high the interest rate goes.
It’s like a gushing fuel pipeline on a white-hot piece of metal raising PPI no matter what the Fed does.
Biden’s going to have to reverse policy on domestic production before too too long.
So, the economic output is crashing, and Inflation is STILL going up and people are losing jobs. Just the opposite of what Brandon is telling people, ugh.
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