Posted on 12/17/2018 10:37:46 AM PST by Moonman62
It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!
Yes...... interest rates though up are still abnormally low
Financial pundits are flapping about the yield curve parity
2.73 5 yr..... 3.14 30 yr
Although they are approaching parity they are not crossing much less inverting.
It’s all hype like ESPN bar room quarterbacks mouthing about game predictions
They have and they are doing it again and they will probably succeed.
Every retirement account in the country is crumbling right now. If that does not cause loss of hope in the future what will?
Food is not included in the computation of inflation.
Just like they caused the Greay Depression
The Creature from Jekel Island is such a great book.
They can and should wait until the recovery is on firm footing ... in several years. Raising rates this year is too soon.
Donald, you obviously have not shopped for groceries since Obama took office. And you need to know that housing prices in all desirable areas are now out of reach of middle class.
It is all the result of ARTIFICIALLY low interest rates forced on us by the FED.
...
You’re right, but the damage has already been done.
Putting rates artificially low to save the economy was a consequence of putting rates too high (relative to the markets and the yield curve) previously.
Continuing the Fed’s cycle of destruction will only make it worse.
It’s now time for wages and other earnings to inflate to catch up with housing and food prices.
Recessions and the Fed’s manipulations are inflationary in the long run.
Correct. We can’t go on with artificially low interest rates forever. The Trump recovery and associated clean-up operation comes with a price — more normal interest rates.
...
Interest rates should be determined by the markets, not elitist absolutes.
When the Fed raises interest rates, the interest the U. S. Government has to pay on it’s debt increases.
So not only does it drive down Federal Tax receipts due to a slowing economy, it also drives up government costs/spending.
The Fed wasn’t concerned about growth under Obama, even when growth was occuring, all be it small growth.
Now it’s just gone postal, and it was really curious how it decided to do it the moment Obama was on the way out.
Everyone chipped in to help Obama and he couldn’t do jack S.
Now everyone is trying to screw Trump over, and he’s still carrying the weight.
Imagine if Trump got 10% of the support Obama got.
The bankers are on the list as well.
> I believe the FED is trying to restore interest rates to historical norms for these conditions. <
Maybe the Fed is part of some conspiracy to hurt Trump. Anything is possible from the Deep State these days. But I think you’re right. It’s just a return to normal.
Higher, normal rates will definitely hurt some people. But on the other hand, many older folks have been crushed by the crazy-low rates on their CDs.
I read the FED reports. “Historical Norms” are never mentioned.
The FED says its job is too keep inflation at a target rate (currently 2%, which according to them is where we are at) and to keep the business cycle at “full” employment, which they also say we have reached.
If they keep raising they’ll just have to lower again when employment and inflation drop below their targets.
The only thing I can come up with is that they think the job market is too hot, and they know politically they can’t raise rates much once the presidential campaign really takes off. The 4th year of presidential terms usually sees a quiet FED. They can’t blame inflation, it’s right where they say they want it.
I believe that’s why he tweeted this message. To either deter the feds from raising again, or to give him a point in time to point to saying “I warned the feds not to hike rates by in Dec 2018...”
Housing prices didn’t just go out of reach after Obama left office.
As for shopping for groceries, you don’t think prices went up under Obama?
Low interest rates do hurt those trying to live off savings, but they help many others buy homes, vehicles, appliances...
Is 19.5% interest charged on your credit card not enough? You do realize that interest floats on the prime interest rate right? Sure, let’s let it go to 7%. Then you can pay around 27% interest for your credit cards, and seven percent more on the purchase of anything you buy.
Retailers will have to raise rates because the money they borrow to conduct business will force them to raise prices across the board.
Hmmm, weren’t you just bitching about inflation?
The second part of your statement is what applies to Trump’s remark.
He lives and dies politically by the economy. He can’t run on employment that is going up and activity that is slowing.
> I used to spend an average of $150 grocery shopping- by the end of obama’s terms I was lucky if I spent less than $300 <
Relevant joke:
An 80-year-old man goes in for his annual physical.
Doctor: So how are you doing, Sam?
Sam: Great! I’m the strongest I’ve ever been in my life.
Doctor (surprised): Really?
Sam: Yep. when I was a kid I could barely carry $5 worth of groceries. Now I can easily carry $50 worth with one hand.
Sorry that should be “he can’t run on Unemployment that is going up”.
That’s their intention, it’s purely political: tank the economy, get rid of Trump.. they are nefarious.
You guys keep ignoring the fact that food prices are not included the FED’s inflation watching.
The stock markets are down over 10% in the last two months, and they are talking about raising interest rates for what the 6th time since Trump was elected? And this after having 0% rates all through obubmers 8 years? Ya, nothing odd about that at all.
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