Fed Raises Rates By 75 Basis Points- What a Healthy Economy

[johngaltshrugged]

Nothing says we have a great economy like the Fed making the largest benchmark rate increase in almost 30 years.
The fact they did this during a Dem presidency shows, something that rarely happens, shows how worried they actually are of the coming storm.
75 basis points is equal to a .75% rate increase. While that may not sound like much, it is huge.
It's designed to slow out of control inflation but is probably too little, too late in that area. In other words, don't hold your breathe waiting for inflation to slow
Plus, it will further slow down a housing market already showing signs of cratering the bubble the dempanic created.
While that may bring down housing prices, don't expect to get more house as the increased rates will affect your borrowing capacity.
Basically, you'll be paying more for less house. Again.


The Whitehouse put out a statement that resident Briben is consulting with MSM, a few RINOs & a band of monkeys to find a way to pin this on DT, climate change, Jan 6 &/or Russia.
They are confident they will have a story soon that someone might believe


The Federal Reserve on Wednesday launched its biggest broadside yet against inflation, raising benchmark interest rates three-quarters of a percentage point in a move that equates to the most aggressive hike since 1994.

JUST IN: Federal Reserve Raises Interest Rates by 75 Basis Points - Largest Hike Since 1994 | The Gateway Pundit | by Cristina Laila

The Federal Reserve on Wednesday raised its benchmark interest rates by 75 basis points – or 0.75 percentage point – in its latest battle against Bidenflation.

www.thegatewaypundit.com

 

[1srelluc]

The dow seems to like it...Up 600 and rising.

 

[iamwhatiseem]

Just like I said clear back in January, and say this because I work for a bell weather industry that has predictably seen coming downturns and upturns 6-8 months ahead.
Summer of 2022 is going to be known as the "Layoff Summer of 22".
It is already happening. Large layoffs are happening across the nation... and it has only began.

You cannot fucking print piles of fake money and give it all away and not expect to pay a HEAVY price for having done it.
ESPECIALLY at a time when the supply chain was already struggling to keep up due to pandemic closures.
Those three nice checks you got in 2020-2021.
Well. YOU ARE PAYING FOR IT NOW.

 

[Mac1958]

12+ years of massive Fed stimulus + $2T poured in by the NY Fed to save short term credit markets in 2019 + exploding post-lockdown demand + still-crippled global supply chains + the Fed admittedly WAY behind on raising rates + Negative European Interest Rates = Big Global Inflation.

It's only a mystery to those who are ignorant.

 

[pknopp]

This should have been done long ago. It's sad how people get addicted to "free" money.

 

[HenryBHough]

Cue the recession.

 

[Mac1958]

This should have been done long ago. It's sad how people get addicted to "free" money.

Strangely enough, there is a definite potential silver lining here. I'd love to see the Fed Funds rate around 4%. We may accidentally be stumbling back towards normal. There was a time you could get a money market fund for 5%.

Not a prediction. But this sure is interesting.

 

[justoffal]

Nothing says we have a great economy like the Fed making the largest benchmark rate increase in almost 30 years.
The fact they did this during a Dem presidency shows, something that rarely happens, shows how worried they actually are of the coming storm.
75 basis points is equal to a .75% rate increase. While that may not sound like much, it is huge.
It's designed to slow out of control inflation but is probably too little, too late in that area. In other words, don't hold your breathe waiting for inflation to slow
Plus, it will further slow down a housing market already showing signs of cratering the bubble the dempanic created.
While that may bring down housing prices, don't expect to get more house as the increased rates will affect your borrowing capacity.
Basically, you'll be paying more for less house. Again.


The Whitehouse put out a statement that resident Briben is consulting with MSM, a few RINOs & a band of monkeys to find a way to pin this on DT, climate change, Jan 6 &/or Russia.
They are confident they will have a story soon that someone might believe


The Federal Reserve on Wednesday launched its biggest broadside yet against inflation, raising benchmark interest rates three-quarters of a percentage point in a move that equates to the most aggressive hike since 1994.

JUST IN: Federal Reserve Raises Interest Rates by 75 Basis Points - Largest Hike Since 1994 | The Gateway Pundit | by Cristina Laila

The Federal Reserve on Wednesday raised its benchmark interest rates by 75 basis points – or 0.75 percentage point – in its latest battle against Bidenflation.

www.thegatewaypundit.com

Bwahahah...The Fed is not responding to a healthy economy ...they are spinning out of control in response to runaway inflation and run the real risk of igniting Stagflation with the rate raises at this time...though admittedly there is really nothing else for them to do. This rate raise makes them look more like a slave to the inflation than the master of it. In the mean time Biden is doing what??? Threatening the oil companies? LOLOLOLOL.....well there goes Joey down the hole....he's gonna find out right good and quick who is actually in charge round these here parts.

 

[justoffal]

Strangely enough, there is a definite potential silver lining here. I'd love to see the Fed Funds rate around 4%. We may accidentally be stumbling back towards normal. There was a time you could get a money market fund for 5%.

Not a prediction. But this sure is interesting.

I have held some in the past for that and a little more too.

JO

 

[Fort Fun Indiana]

Nothing says we have a great economy like the Fed making the largest benchmark rate increase in almost 30 years.

Actually, that's exactly what you do in healthy economies.

Then, you lower rates during recessions.

Wow dude.

You don't have any idea what you are talking about.

 

[pknopp]

Actually, that's exactly what you do in healthy economies.

Then, you lower rates during recessions.

Wow dude.

You don't have any idea what you are talking about.

We don't have a healthy economy but the Fed now has little choice in the matter since they refused to raise it earlier. Just imagine how much worse it would be now if Trump had got his way and we instituted negative rates.

I wonder if Biden ever thinks of calling Obama and saying, "thanks you really screwed me".

 

[justoffal]

Actually, that's exactly what you do in healthy economies.

Then, you lower rates during recessions.

Wow dude.

You don't have any idea what you are talking about.

Yeah except this time its not health of the economy that is scaring the shit out of the FED....this inflation is not the positive kind fostered by quant easing in response to growth of GDP...it is the catch up for your life kind fostered by runaway inflation caused due to dollar devaluation. WOW DUDE>>>>YOU REALLY DON"T KNOW WHAT YOURE TALKING ABOUT HERE <<<<<<but you know this and just won't give in to the obvious....this is my guess. There's now way you don't already know this....

JO

 

[Fort Fun Indiana]

We don't have a healthy economy but the Fed now has little choice in the matter since they refused to raise it earlier.

Well, yes and no. You are correct that they left it too low for too long. But if we had "normal" rates and high inflation, they would raise it anyway

 

[Fort Fun Indiana]

..it is the catch up for your life kind fostered by runaway inflation caused due to dollar devaluation.

No it isn't.

 

[pknopp]

Well, yes and no. You are correct that they left it too low for too long. But if we had "normal" rates and high inflation, they would raise it anyway

Sure in theory but the high inflation is because of years of free money.

 

[Godboy]

The dow seems to like it...Up 600 and rising.

Im curious, how fucking dumb do you have to be to make such a stupid god damn post?

 

[Indeependent]

We never recovered from the DOT COM crash and never will.

 

[justoffal]

No it isn't.

Yes it is...

• Demand-pull inflation results from an excess of aggregate demand relative to aggregate supply. For example, consider a popular product where demand for the product outstrips supply. The price of the product would increase. The theory in demand-pull inflation is if aggregate demand exceeds aggregate supply, prices will increase economy-wide.

In this case supply was artificially curtailed by bad policy....ergo devaluation of the currency.... fess up dude....you've been caught with pantaloons around your party affiliation ankles.

 

[Fort Fun Indiana]

Sure in theory but the high inflation is because of years of free money.

That's a myth. It's from pent up demand, supply issues, and high oil prices.

 

[Fort Fun Indiana]

Yes it is...

• Demand-pull inflation results from an excess of aggregate demand relative to aggregate supply. For example, consider a popular product where demand for the product outstrips supply. The price of the product would increase. The theory in demand-pull inflation is if aggregate demand exceeds aggregate supply, prices will increase economy-wide.

In this case supply was artificially curtailed by bad policy....ergo devaluation of the currency.... fess up dude....you've been caught with pantaloons around your party affiliation ankles.

Curtailing supply = dollar devaluation

Nowhere, ever, in any book or academic setting.

What a bizarre post