Skip to comments.Fed hikes rates, points to two more increases by year's end
Posted on 06/13/2018 11:03:02 AM PDT by DCBryan1
The Federal Reserve hiked its benchmark short-term interest rate a quarter percentage point Wednesday and indicated that two more increases are likely in store ahead.
The move pushes the funds rate target to 1.75 percent to 2 percent. The rate is closely tied to consumer debt, particularly credit cards, home equity lines of credit and other adjustable-rate instruments.
In an unusually terse statement that ran just 320 words, the Federal Open Market Committee changed multiple phrases from its previous missives, pointing to a more optimistic view on economic growth and higher inflation expectations.
(Excerpt) Read more at cnbc.com ...
Apparently the economy is strong.
It’s kinda funny, but I was passing the guy on the freeway offramp this morning who had the “no job, please help” sign and I consciously thought: “Obama’s not president any more. The economy is booming, get a friggin’ job.”
...higher inflation expectations.
A lot of the federal debt can be “paid down” simply by monetizing it. Looks like that’s what we’re in for. Get your bills paid and acquire “stuff” while it’s still cheap.
Thanks for posting.
AUDIT the FED. (Notice the conman’s years)
They’ve been saying they would do this for the last four years, when the economy gets to where it is today.
Political. No inflation. They want to kill the economy.
Regarding the sign guy.
There was a sign guy at my exit who was there pretty often. Strangely believe it but I often saw him at a different exit 90 miles to the north.
Pondering that I concluded that sitting with the sign was his job. Then I wondered how much could he collect? How bout $10 an hour?
I can believe he could easily collect $10 an hour at the busy exits. Two $5 scores and he could rest for that hour. Then, it is tax free so in effect it is at least $11 an hour in real money.
I have concluded that patiently and persistantly sitting with a sign at a busy exit pays far more than the minium wage
That IS his job. In case you haven't heard, some of these "indigent" people on prime corners bring in over $100/day or more. Some have smart phones and CREDIT CARD SWIPERS!
From a politician’s point of view, the least painful way to pay down the debt is by inflating the dollar. But they had better be careful. Because this also makes it more expensive for them to borrow new money.
This is purely political.
Figure one light cycle every few minutes, so roughly 15-30 cycles per hour. Of those, you might get one handout every two or three cycles, and I’ve seen multiple handouts on a single cycle.
Now, assume those handouts range from $1 to a high of maybe $20, but I suspect $1 to $5 is the average. A lot of it depends on the exit.
I figure it is reasonable to assume an income of $30 an hour on average and sometimes more than $100, some hours.
In all seriousness, I suspect it actually pays very good money, but you would have to rotate exits.
They weren’t going to stay at zero forever.
Yep. It’s a tightrope act. It hurt Carter. At the end of the Carter years, a friend’s parents had to come out of retirement because inflation destroyed their savings.
I think the massive QE and subsequent super-low interest rates during the 0bama years was definitely political. Grandma Janet couldn’t do enough to kiss 0bama’s ring.
But I believe that not only is inflation rearing its ugly head, it is far worse than is being reported. While a box/bag of a commodity may be roughly the same price at the checkout stand, the box/bag is about 40% smaller in most cases!
Problem is the US has gargantuan and growing deficits. But the effects are mitigated by an expanding Trump economy (increased tax receipts).
Glad I got our house refi 30 year fixed at 3.875%. Won't see a 3 handle rate for a LONG time.
> No inflation. <
You’re right when it comes to things like electronics. But there is certainly food inflation. A 10 oz box of cookie went for $3. Now an 8.5 oz box goes for $3. I’m paying more per cookie.
Labor costs could go down further in many industries with increased mechanization. It is hard to have sustained inflation without wage increases.
It is hard to have sustained inflation without wage increases.
When you raise the floor, you raise the ceiling - and everything in between.
In the chart in link #4...cick on the 10 year tab at the bottom of the chart.
“Some have smart phones and CREDIT CARD SWIPERS!”
That would be ironic....if the government tries to make cash illegal but it gets struck down by the Supreme Court because beggars will have no cheap means to collect digital charity. The flute players in the subways won’t be able to put a hat out to collect cash.
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