Posted on 07/26/2023 12:55:06 PM PDT by ChicagoConservative27
The Federal Reserve on Wednesday raised its benchmark interest rate by a quarter of a point, resuming its campaign to increase borrowing costs and crush inflation after a brief pause in June.
The unanimous decision puts the key benchmark federal funds rate at a range of 5.25% to 5.5%, the highest since 2001, further restricting economic activity as the borrowing costs for homes, cars and other items march higher.
It marks the 11th rate increase aimed at combating high inflation since policymakers began tightening in March 2022.
Policymakers also left the door open to additional interest rate increases this year, despite a recent pullback in inflation.
(Excerpt) Read more at foxbusiness.com ...
but....inflation is under control, hunter and his pa are innocent and
the gvt is only here to help.
truth is, inflation is no longer measured the way it used to be during a previous failed president. when inflation was measured during the dark ages of carter, food and energy increases were factored in. we can only imagine the ACTUAL inflation of today.
I follow Shadow Statistics, as the CPI GDP Employment (and other) numbers issued by the government are bogus nonsense. Inflation is at about 12% down from about 17%. Interest rates at 5.5% makes borrowing money “very easy” and far from a “tight” monetary policy.
There will be consequences, and they will be very bad consequences, for the US government to be under the belief that it can borrow unlimited amounts of money each year and use the Fed Reserve to force interest rates to be well below the inflation rate.
And when humpty dumpty falls off the wall, all the elites’ horses and the elites’ men won’t be able to put humpty together again.
In 1981 and 1982, the Federal Reserve, under Chairman Paul Volcker raised the benchmark rate to 20%.
Our first house in FL in 1990 had a 9.5% interest rate.....
Our home in 1983 had an interest rate of 12% taken back by the seller.
It won’t be enough, and I’m tired of explaining it. Getting people (especially Democrats) to understand how fiscal policy is overwhelming the economy is like trying to teach the quadratic equation to adolescent flatworms.
https://market-ticker.org/akcs-www?post=249340
“In 1981 and 1982, the Federal Reserve, under Chairman Paul Volcker raised the benchmark rate to 20%.”
Too bad they didn’t sell one hundred year government bonds back then...
;-)
“I’m tired of explaining it.”
Great quote you may like—relevant to so many issues today:
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.”
Upton Sinclair
It is still too low. I know it will wreck the economy, but inflation does not help the economy.
“It is still too low. I know it will wreck the economy, but inflation does not help the economy.”
What wrecks the economy is raising interest rates in the hope of stopping the inflation caused by the excessive printing of money.
And gas prices spiked up 15 cents/gallon over night.
“Interest rates at 5.5% makes borrowing money “very easy” and far from a “tight” monetary policy.”
Loans to consumers are higher.
....but not the borrowing costs of the trillions F.Govt
That’s BIDENOMICS!! 🙄
The Fed is trying to remove some money out of the economy. But they're not doing it fast enough. The Texas Roadhouse in my town is always packed. Even though the prices are up now. Still doesn't matter.
If the Fed is setting the interest rate, isn’t it artificially to low?
High interest rates are good for savers. The Feds setting rates too low, steals money from savers.
There’s still a few trillion Nancybucks flying through the air looking for pockets to land in.
There’s still a few trillion Nancybucks flying through the air looking for pockets to land in.
*****************
It’ll last awhile but not forever.
Eventually the bankers will evaporate some of this monetary excess.
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