Posted on 05/03/2023 11:09:02 AM PDT by ChicagoConservative27
The Federal Reserve voted to raise interest rates Wednesday by another 0.25 percentage points, brushing aside concerns about the financial sector and an expected recession later this year.
The Fed’s rate-setting committee voted Wednesday to boost its baseline interest rate to a range of 5 to 5.25 percent, the point where Fed officials expected in March to stop hiking rates, according projections from the Fed’s last meeting.
The latest rate hike is the tenth in a row since the Fed began its program of quantitative tightening in March of last year.
Over the past 14 months, the Fed has boosted borrowing costs and shrunk its balance sheet in a historically swift battle with inflation.
(Excerpt) Read more at thehill.com ...
They are either trying to screw us, or else they are very frightened of something. Probably both.
Not being an economist, what do they think continual raising of the interest rate will accomplish? Seems to me this is something that should be done over a longer period of time.
Except they have a mini QE to bail out banks. It’s like putting a humidifier and a dehumidifier in a room and letting them fight it out.
good for short term money market funds ...
bad for dividend stocks ...
bad for mortgage rates and house prices ...
bad for banks that are two trillion underwater from near-zero interest paper the stupid bankers bought and then got caught in the biden inflation/interest rate trap ...
This is all for nought until something is done about federal spending.
The markets are slightly up today. Guess they already had this factored in.
They're absolutely trying to screw us, and they're absolutely crashing the economy on purpose.
There is no other LEGITIMATE explanation.
If you were trying to destroy the economy, our country and our way of life, what would you do different? Probably NOTHING.
The Fed was always going to 5% they are there now. And they will stay there. The other major countries, especially Europe would like the rates to be closer to 3%. That won’t happen. They will stay at 5% for possibly years. This allows the Fed to react to a problem. Plus it punishes Russia and China who can’t pay 5%. Money will not need to go to risky countries if it can get 5% safely here. Hopefully this soaks up most stupid money.
To tame inflation.
“We are screwed”
Yup. Some banks teetering on the edge will go bankrupt in weeks. This could cascade.
Buy more canned and dry foods, get your cash out NOW.
They will derail the train and a lot of us wil get crushed.
July WTI below $70/bl
You can cure cancer by shooting the patient in the head too.
You used the word “safe” . seems when Biden seized foreign assets it made some jittery and they are playing around with alternatives.
Kill the patient to cure the disease.7
Seems the banks have not managed their risks against interest rate hikes and now the Fed does this?
The biggest screw over is the high credit score mortgages now have to pay higher fees to offset the low credit score applications. All in the name of DEI.
Well its not safe to lots of people. But most American money is safe. Not sure where else to go. No other major currency is up verses the dollar. Gold is up, but the transaction and storage costs are very high, same with Bitcoin. I guess GLD (the etf) has been profitable. except for two months in the recent past.
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