• Fed Hikes Interest Rate for Second Time in Three Months
    8 replies, posted
[quote] The Federal Reserve raised its benchmark interest rate Wednesday, launching into what investors expect to be a more rapid series of increases that will help ward off the threat of inflation but also raise costs for indebted American households. Fed officials voted nearly unanimously following a two-day policy meeting in Washington to raise the key interest rate for overnight lending by a quarter-point, from a range of 0.5 percent to 0.75 percent to a range of 0.75 percent to 1.0 percent. “The simple message is the economy is doing well,” Fed Chair Janet L. Yellen said in a news conference after the announcement. [/quote] [url]https://www.washingtonpost.com/news/wonk/wp/2017/03/15/fed-hikes-interest-rate-hits-brakes-on-growing-economy/?utm_term=.7e9181e048b7[/url] [URL]http://www.nbcnews.com/business/economy/fed-hikes-interest-rate-second-time-three-months-n733896[/URL] One interesting contrast between the fed and trump. He wants larger growth, the fed is saying no.
Interest rates are too low and setting them even lower won't help our growth as much as it theoretically should. If Trump, or anyone for that matter wants growth, then they're going to have to find a way to increase US productivity first.
why hasn't this been gradually raised over many, many years instead of repeatedly and irresponsibly throttled by two-year olds. trump antics aside, we really do need to drain the swamp...
[QUOTE=cdr248;51966680]Interest rates are too low and setting them even lower won't help our growth as much as it theoretically should. If Trump, or anyone for that matter wants growth, then they're going to have to find a way to increase US productivity first.[/QUOTE] They're [i]raising[/i] the rates... which means we [i]are[/i] growing. [QUOTE=sYnced;51966869]why hasn't this been gradually raised over many, many years instead of repeatedly and irresponsibly throttled by two-year olds. trump antics aside, we really do need to drain the swamp...[/QUOTE] Please take a finance/economics course before spewing this nonsensical bullshit.
Good sign of our economy. Just in time for it to go down the shitter again.
Hope this flows onto Australia. The only way our housing prices will become affordable is with a housing crash. And that need interest rates to go up.
[QUOTE=Snowmew;51967150]They're [i]raising[/i] the rates... which means we [i]are[/i] growing. Please take a finance/economics course before spewing this nonsensical bullshit.[/QUOTE] I know we're growing, I'm disagreeing with Trump on the matter that we need to keep rates low in order to grow more; We can still promote healthy growth without low interest rates. [editline]16th March 2017[/editline] [QUOTE=RenegadeCop;51967309][url]http://www.investopedia.com/investing/how-interest-rates-affect-stock-market/[/url] They are "letting off the gas" (as my professor puts it) for a bit, which is a fine thing to do when the engine (i.e. the economy) gets too hot. There is a point where lowing the interest rate stops helping the economy and instead causes over-inflation. This is a way to help prevent that. (Inflation is going to happen naturally over time, regardless, as an economy expands) Educate yo self, literally a google search away.[/QUOTE] Another thing to add is the reason why we've been putting off raising the rates for so long is that our economy, while growing steadily, is not currently in any danger of inflation. In fact, we're actually below our target inflation. Our economy is so fucked post-2008 that the Fed's having a hard time figuring out when to cool the jets.
[QUOTE=sYnced;51966869]why hasn't this been gradually raised over many, many years instead of repeatedly and irresponsibly throttled by two-year olds. trump antics aside, we really do need to drain the swamp...[/QUOTE] because last year and the year before they needed to wait because the markets overreacted, now they are doing better. we have to raise rates anyways because if anything should happen, 0% interest gives us no room to work
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