Hopes for substantial cuts in interest rates are fading as inflation shows more staying power than expected.

[DigitalDrifter]

Joeflation still having a big impact for families across the country.
Every time you go to the grocery store, or fill your gas tank, you just have to shake your head.

If interest rates stay high, young people will continue to postpone their hopes for buying a home. And how about couples wanting to have children? Would you have children at this time when there's no relief in sight?
The naming of the "Inflation Reduction Act" and "Bidenomics" will go down in history as two of the biggest marketing and branding blunders of the 21st Century.

Stubborn Inflation Could Prod Fed to Keep Rates High for Longer​

Hopes for substantial cuts in interest rates are fading as inflation shows more staying power than expected.

April 26, 2024Updated 9:26 a.m. ET
The Federal Reserve’s most closely watched inflation measure remained stubborn in March, the latest evidence that price increases are not fading as quickly as policymakers would like, and another reason that interest rates may stay higher for longer.
Investors came into 2024 hopeful that Fed officials would cut rates substantially this year, but those hopes have been fading as inflation has shown much more staying power than expected. Wall Street increasingly sees lower rates coming much later in the year, if the Fed manages to cut them at all.
The latest Personal Consumption Expenditures index reading could keep the Fed on a cautious path as it considers when to lower borrowing costs.

Stubborn Inflation Could Prod Fed to Keep Rates High for Longer

Hopes for substantial cuts in interest rates are fading as inflation shows more staying power than expected.

www.nytimes.com

 

[Meister]

GDP is slowing as joeflation keeps rising. This is not good for the economy.

• GDP advances an annualized 1.6%, slower than all projections
• First-quarter core inflation measure accelerates to 3.7% rate

US Economy Slows and Inflation Jumps, Damping Soft-Landing Hopes

US economic growth slid to an almost two-year low last quarter while inflation jumped to uncomfortable levels, interrupting a run of strong demand and muted price pressures that had fueled optimism for a soft landing.

www.bloomberg.com

 

[1srelluc]

I'm sure the "usual suspect" FJB knob polishers will be along to try to claim everything is fine.

 

[Crepitus]

Joeflation still having a big impact for families across the country.
Every time you go to the grocery store, or fill your gas tank, you just have to shake your head.

If interest rates stay high, young people will continue to postpone their hopes for buying a home. And how about couples wanting to have children? Would you have children at this time when there's no relief in sight?
The naming of the "Inflation Reduction Act" and "Bidenomics" will go down in history as two of the biggest marketing and branding blunders of the 21st Century.

Stubborn Inflation Could Prod Fed to Keep Rates High for Longer​

Hopes for substantial cuts in interest rates are fading as inflation shows more staying power than expected.

Stubborn Inflation Could Prod Fed to Keep Rates High for Longer

Hopes for substantial cuts in interest rates are fading as inflation shows more staying power than expected.

www.nytimes.com

interest rates are still not historically high. Kinda mid, in fact.

 

[LeftofLeft]

interest rates are still not historically high. Kinda mid, in fact.

The damage from the ‘21-‘22 spike in inflation needs new policy in order to repair. Current policy is not working.

 

[Crepitus]

The damage from the ‘21-‘22 spike in inflation needs new policy in order to repair. Current policy is not working.

What would you like to see done?

 

[Dekster]

Think I warned folks not to expect that "soft-landing" nonsense anytime soon.

 

[DigitalDrifter]

interest rates are still not historically high. Kinda mid, in fact.

Well yeah, my first home was purchased with a 17% interest rate. But then again, the price of the house was $39,000.

The last mortgage I got three years ago, was 2.9%, so 7% really really sucks when you consider the price for new homes haven't been dropping to compensate for it.

 

[Crepitus]

Well yeah, my first home was purchased with a 17% interest rate. But then again, the price of the house was $39,000.

The last mortgage I got three years ago, was 2.9%, so 7% really really sucks when you consider the price for new homes haven't been dropping to compensate for it.

Home I'm currently in was bought at 7% 20 years ago. First home was at 13% ten years before that.

One of the reasons home prices went up so much is artificially low interest rates.

 

[RhodyPatriot]

If anything, there is a slighter chance the Fed may actually raise rates again.

Ain't it funny, how the predictions of all the "financial experts" repeatedly fail to come to fruition?

 

[1srelluc]

interest rates are still not historically high. Kinda mid, in fact.

This home built in the mid-50s sold back then for $3,500.

My mom's friend and her husband bought it.....Their son rented it out for years after they passed. It just sold for 329K.

2beds
2baths
1,012 sq ft (finished basement counted)

So yeah, I was fine with my 7.25% home interest rate back in '77 when I bought my first home but it was only 32K and bigger than the one in the pic.

A like vintage 2B-1B 850 sq ft home on a postage stamp lot sold for 235K a couple of weeks ago down the road from me.

 

[luiza]

If anything, there is a slighter chance the Fed may actually raise rates again.

Ain't it funny, how the predictions of all the "financial experts" repeatedly fail to come to fruition?

Not one sound pundit that I follow has forecast anything but likely disaster .
Not just now, but from 18 months ago and getting louder. .

Which is why I suspect Stagflation will be hard to avoid, and my catch words have been and remain Gold, Silver and Copper . Commodities in general , particularly Precious Metals .

 

[RhodyPatriot]

Not one sound pundit that I follow has forecast anything but likely disaster .
Not just now, but from 18 months ago and getting louder. .

Methinks you follow wiser pundits than most people.

 

[westwall]

Well yeah, my first home was purchased with a 17% interest rate. But then again, the price of the house was $39,000.

The last mortgage I got three years ago, was 2.9%, so 7% really really sucks when you consider the price for new homes haven't been dropping to compensate for it.

And even back then that 17% interest rate killed the home market. That was one of the major reasons that Carter lost

 

[jbrownson0831]

I'm sure the "usual suspect" FJB knob polishers will be along to try to claim everything is fine.

Of course, all of them suck the government teat.....

 

[LeftofLeft]

What would you like to see done?

Cut spending and stop with gimmick legislation like “The Inflation Reduction Act” which accomplishes everything but reduced inflation.

 

[TheGreatSatan]

Take note America.

Democrats are here gaslighting you about how great the economy is while behind the scenes they build bunkers and gas stations retool for double digit gas prices.

The reserves have been drained.

Soon Americans will wake up to a loaf of bread costing $800. Then WEF/Democrats will usher in their CBDC to save the day.

If democrats aren't defeated, your children will grow up to be slaves and America as you know it today will be dead.

 

[John Edgar Slow Horses]

LeftofLeft left himself.

Let the economy work itself without artificial gimmicks.

 

[luiza]

LeftofLeft left himself.

Let the economy work itself without artificial gimmicks.

Here's Horsey Horse with more of his amazing advice

Horsey , there are things that work and others that do not .
But none come gift wrapped with guaranteed promises .

Which is why You , Mr Chuckles , must tell us how you assess the chances of Ukraine and your reasons to claim that the Covid virus was not weaponised and that the so called vaccines are not Killer Shots

Any more predictions Mr Chuckles? Will americans be first to land men on the Moon ?
Let us know .

 

[Crepitus]

This home built in the mid-50s sold back then for $3,500.

My mom's friend and her husband bought it.....Their son rented it out for years after they passed. It just sold for 329K.

2beds
2baths
1,012 sq ft (finished basement counted)

So yeah, I was fine with my 7.25% home interest rate back in '77 when I bought my first home but it was only 32K and bigger than the one in the pic.

A like vintage 2B-1B 850 sq ft home on a postage stamp lot sold for 235K a couple of weeks ago down the road from me.

artificially low interest rates are one of the main reasons housing prices spiked.

I bought my current home for $125K 20 years ago. now paying taxes on $275 K