Skip to comments.Fed may raise rates as soon as next spring, Yellen suggests
Posted on 03/19/2014 3:04:35 PM PDT by Red in Blue PA
WASHINGTON (Reuters) - The Federal Reserve will probably end its massive bond-buying program this coming fall, and could start to raise interest rates around six months later, Fed Chair Janet Yellen said on Wednesday.
That's a somewhat more aggressive path toward higher rates than some investors had anticipated, and both U.S. stocks and bonds slumped. Futures traders now are pricing in a first rate hike as soon as April 2015.
"She certainly moved (the timetable) up a little bit and I don't think the market was expecting that at all because she is widely viewed as being more on the dovish side of the aisle than she is on the hawkish side," said Peter Kenny, CEO of Clearpool Group in New York.
In announcing its view on future rates after a two-day policy meeting, the Fed dropped a set of guideposts it was using to help the public anticipate when it would finally start bumping overnight borrowing costs up from zero.
(Excerpt) Read more at finance.yahoo.com ...
Ya raise interest rates and watch what’s left of the middle class economy and housing implode....
Just in time to blame a new Republican Congress.
Hhmmm...interesting...waits till after the 2014 midterms
Yep...what you said
What I was thinking.
Any improvement in the economy will be more than offset by increased interest rates.
And the socialists will spend billions of public information campaigns to make sure R’s are to blame (falsely.)
Note to self:
1) Buy more long-term-storage food.
2) Plant garden.
3) Put back more potable water.
4) Buy more ammo.
5) Dig bomb shelter.
Yep, all of these liberals, socialists and communists in this government are preparing for a complete change over of the senate and the house. The same thing is happening to these Alphabet Govt. Agencies. They are already taking sides on this coming election. What they plan to do is completely throw this government in a turmoil. They are thinking that once these conservatives are elected in 2014, and the whole country is in a turmoil, maybe, just maybe, come the 2016 election, the people will want them back.
And for all their evil, the Democrats are very good at playing those games -— like delaying Obamacare.
All for effect.
Not approving of what they’re doing but I think you guys are right.
Since China was not dumb enough to keep buying our “promise to pay you back later” bonds, our government came up with a great idea-sell the bonds to.....themselves.
At this point - and it’s been clear for a few years now - an improvement in the economy is bad, possibly devastating, for the economy.
Who wouldda guessed it?
Are you implying the Federal Reserve is NOT impartial?
They have to continue to pump the money machine until after the elections.
Keynesians say that so long as you keep circulating the money, it doesn’t matter if it’s a total fiction. To me, it’s sort of like taking water out of one end of the swimming pool and dumping it back in the other end.
6) Pray. Maranatha.
Yeah, sure—next Spring. [/s]
Mark my words: The FED will never raise rates. Ever. To do so, would collapse the entitlement state. Can’t have that.
For those of you who haven’t figured it out yet, zero interest rates are a TAX on savers in order to finance out of control Government spending—especially on entitlements. If rates go up, the spending party has to end. It can’t end, so they will stay zero forever.
I’m for it if it’s not excessive because it will help clear up this easy money crap and maybe stem off the inflation no one talks about (models are worthless and political these days).
Remember, interest rates go both ways. The low return on investment these days is driving money into stocks which always bubble and correct.
Home mortgage owners that are locked in now have nothing to fear unless they are looking to sale.
Oh yeah — thanks
I should have stated those were just Earthly preparations - LOL.
Let the final destruction begin.
They’ve been saying ‘next fall’, ‘next spring’ for years now. Any one noticing? LOL
For years now, millions are part time if they have jobs, hours cut, pay cut, benefits devoured....Savers?
That’s about it...But it really don’t matter to me anyway...As I’m sure as +*$% not looking for any loans or to pay on any credit...
We got off that slave train years ago.
“Any improvement in the economy will be more than offset by increased interest rates.”
Absolutely; imagine the spike in insolvent households when the following increase: the interest rates on the record credit card debt Americans have ammassed over the past decades trying to preserve their standard of living, and the adjustable rates on mortgages held by people who are “under water” (and therefore unable to transition to a traditional fixed-rate mortgage).
On top of that, home sales will plummet even further. Once people stopped having children due to financial instability, they sure as heck weren’t going to buy a home; this would be the last straw for a housing sector that is already hurting.