Is The Fed Gong to Up Interest Rates?

longknife

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Sep 21, 2012
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And what will that do to the economy?

Although considered an entity of the federal government, The Federal Reserve is actually a private entity. Among many responsibilities outlined @ Federal Reserve System - Wikipedia it is responsible for "monetary policy:"

The term "monetary policy" refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. What happens to money and credit affects interest rates (the cost of credit) and the performance of an economy. The Federal Reserve Act of 1913 gave the Federal Reserve authority to set monetary policy in the United States.

This report seems ti suggest that a "hawkish" stand by The Fed chairman is the cause of recent fluctuations in the stock market.

This market is still trying to determine how to view future Fed policy, and that process will create volatility. Yesterday’s market reversal and subsequent sell-off is just part of this process, as the market adjusts to a new era of a rising inflation and a not-perma-dovish Fed.”

The full article @ Fed Chair Serves Up a Surprise | Stock Investor
 
And what will that do to the economy?

Although considered an entity of the federal government, The Federal Reserve is actually a private entity. Among many responsibilities outlined @ Federal Reserve System - Wikipedia it is responsible for "monetary policy:"

The term "monetary policy" refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. What happens to money and credit affects interest rates (the cost of credit) and the performance of an economy. The Federal Reserve Act of 1913 gave the Federal Reserve authority to set monetary policy in the United States.

This report seems ti suggest that a "hawkish" stand by The Fed chairman is the cause of recent fluctuations in the stock market.

This market is still trying to determine how to view future Fed policy, and that process will create volatility. Yesterday’s market reversal and subsequent sell-off is just part of this process, as the market adjusts to a new era of a rising inflation and a not-perma-dovish Fed.”

The full article @ Fed Chair Serves Up a Surprise | Stock Investor

Is The Fed Gong to Up Interest Rates?

Yes, the Fed is going to raise overnight rates.

Although considered an entity of the federal government, The Federal Reserve is actually a private entity.

Actually, it's part of the US government.
 
Your source article is pretty solid for its target audience, stock traders. But it does skip over or under reports things their readers and advertisers could care less about and that includes the following:

The SALT, mortgage and regulatory gradient between states has become much greater than it has been since the 1920s. That means that national money policy is becoming more increasingly different in effect depending on the state. After-tax net spendable is going up by what may be double digits here in north FL, that is going up double digits in unsolicited housing bids.

Tax increases to make up for loss of tax base are causing deflation of net spendable in high tax/high cost/high regulation states.

The 10 year treasury is supposed to yield the nominal GDP growth rate +/- 0.001% but that is based on the idea that inflation is the same +/- 5% nationwide and that there are no major barriers to relocation. That is no longer true. The Fed is in uncharted territory.
 

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