Federal Reserve Raises Interest Rates By 25 Basis Points

[Mac1958]

Yeah, exactly.

This very thought has had me wondering how long it takes to feel the full effect of an increase in the rate. Maybe the Fed is acting too hastily to make up for being asleep at the switch.

We can only guess, and mine is that they left themselves no choice. They blew it. They were left at the station while inflation rolled away. I've been wondering all along if it would be smarter to do fewer, sharper increases. 100bps, 125bps. Who knows. And dang it, THEY DIDN'T ASK ME.

 

[Mac1958]

That is precisely what is driving inflation. Consumer demand spiked to its highest level in history after the pandemic. All that stimulus money was burning a hole in their pockets.

Yep. Demand exploded, global supply chains immediately buckled, and here we are.

 

[g5000]

We can only guess, and mine is that they left themselves no choice. They blew it. They were left at the station while inflation rolled away. I've been wondering all along if it would be smarter to do fewer, sharper increases. 100bps, 125bps. Who knows. And dang it, THEY DIDN'T ASK ME.

What do you make of the spike of borrowing at the discount window?

My spidey senses tell me someone is taking advantage of the cheap money while the cheating is good.

Either that, or things are REALLY bad.

 

[Mac1958]

What do you make of the spike of borrowing at the discount window?

My spidey senses tell me someone is taking advantage of the cheap money while the cheating is good.

Either that, or things are REALLY bad.

I'd like to know if that's confined by industry or if it's all over. If it's spread out, that could be a troubling omen. Not sure what it would mean if it were confined. To be honest, I hadn't seen the story.

 

[WEATHER53]

Actually it is in the Fed dual mandate to lower or raise interest rates to keep inflation at 2 percent.

The second part of their mandate is to maximize employment.

You are consistently wrong, man.

There is no mandate precedent of 2%
That’s something the chair has personally imposed.
Try being aware of past actions and precedents before spouting.
No 2% “mandates” (I told you once they got into the mandating business they would find it far too delicious to let go of). This chair declares a Fauci style Uber emergency, sets his own unrealistic abd unnecessary 2% mandate and unleashes punitive Nanny state actions against Americans to force it to happen
No one cares if they pay 500 or600 for a TV via inflation. Leave the free market alone. Everyone does care when their investments drop 15k in a day or the interest rate to finance the TV goes from 4 to 10%.

 

[g5000]

Imagine you had a token which was worth $50, but today it is worth $25. If you go around begging for a loan, ordinary lenders will only accept your collateral as being worth $25.

And then magically, wonderfully, incredibly the Fed says they will value your piece of shit at $50.


That's what is going on at the discount window.

That spike tells me something really, really bad is going on.

 

[g5000]

I'd like to know if that's confined by industry or if it's all over. If it's spread out, that could be a troubling omen. Not sure what it would mean if it were confined. To be honest, I hadn't seen the story.

I started a topic about it a few days ago: The Federal Reserve Is Bailing Out The Banks Again

The new program is called the Bank Term Funding Program (BTFP).

The name implies it is just for the banking industry.

Here is the Fed's press release about it: Federal Reserve Board announces it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors

They are accepting shit bonds at par value as collateral.

 

[WEATHER53]

That is precisely what is driving inflation. Consumer demand spiked to its highest level in history after the pandemic. All that stimulus money was burning a hole in their pockets.

We know you view people who have money to spend as very bad
Pent up spending post Covid is natural and good. This Fauci type wants to choke that. Not in their charter.

 

[Mac1958]

I started a topic about it a few days ago: The Federal Reserve Is Bailing Out The Banks Again

The new program is called the Bank Term Funding Program (BTFP).

The name implies it is just for the banking industry.

Here is the Fed's press release about it: Federal Reserve Board announces it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors

They are accepting shit bonds at par value as collateral.

Jesus. I'm admittedly not as tuned in right now -- I sold in October, and I'm in the process of transitioning out (1 year consulting agreement).

Off the top of my head, I can't think of a reason that wouldn't be negative. Or REALLY negative. I'd love to know how many of those banks hedged interest rates when they bought their bonds.

 

[Toddsterpatriot]

Imagine you had a token which was worth $50, but today it is worth $25. If you go around begging for a loan, ordinary lenders will only accept your collateral as being worth $25.

And then magically, wonderfully, incredibly the Fed says they will value your piece of shit at $50.


That's what is going on at the discount window.

That spike tells me something really, really bad is going on.

And then magically, wonderfully, incredibly the Fed says they will value your piece of shit at $50.

As collateral for a short-term loan.
When the loan ends, you get back your original token.

 

[WEATHER53]

Imagine you had a token which was worth $50, but today it is worth $25. If you go around begging for a loan, ordinary lenders will only accept your collateral as being worth $25.

And then magically, wonderfully, incredibly the Fed says they will value your piece of shit at $50.


That's what is going on at the discount window.

That spike tells me something really, really bad is going on.

We deal with what is rather than the what if of imagination

 

[saveliberty]

That happens when rates rise. Can't keep zero rates forever.

Not only can you not keep zero percent rates forever. but it was obvious with inflation two years ago rates would rise very soon. Inflation only has one cure, higher interest rates. It is clearly the bigger threat to the average citizen than some bank closures. Banks just scream louder and to the right people more than we do.

 

[g5000]

We know you view people who have money to spend as very bad
Pent up spending post Covid is natural and good.

O'rly? You haven't heard all the grinding and gnashing of teeth over inflation?

Seriously?

 

[bugs]

Federal Reserve raises benchmark rate by 0.25 point despite bank turmoil​

​

God knows how many more billions of dollars of bonds just sank beneath the waves.

The Fed was looking at 50 basis points, but I guess the banking crisis gave them some second thoughts.

Banking Crisis? um.. Biden said everything is OK.. Right?

 

[g5000]

Not only can you not keep zero percent rates forever. but it was obvious with inflation two years ago rates would rise very soon. Inflation only has one cure, higher interest rates. It is clearly the bigger threat to the average citizen than some bank closures. Banks just scream louder and to the right people more than we do.

There is a tipping point where bank failures could cascade us into another depression.

 

[g5000]

Banking Crisis? um.. Biden said everything is OK.. Right?

He said the SVB depositors would get their money back.

He also said some of Trump's banking deregulation needed to be reinstated.

And he said the banking system is safe, because that is what Presidents are supposed to say.

 

[g5000]

No one cares if they pay 500 or600 for a TV via inflation.

Wow.

Just...wow.

 

[saveliberty]

There is a tipping point where bank failures could cascade us into another depression.

Quick question: How many banks have failed since 2007?
Answer: 536 and we have no depression.

 

[LordBrownTrout]

See post 6.

Now, watch as the fed makes large banks whole and lets small banks fail in order to consolidate to a small number of large banks in a desperation attempt. It doesn't matter though. The world financial system is about to ultimately fail and a one world type of currency will arise.

 

[DudleySmith]

Federal Reserve Board - Board Members

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov