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Fed's Powell: "50 basis points will be on the table for the May meeting".
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2022 Apr 22, 6:18am 771 views 26 comments
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3
richwicks
2022 Apr 22, 8:25am
richwicks
2022 Apr 22, 8:25am
Remember when Alan Greenspan recommend that everybody move to an adjustable rate mortgage? That wasn't too long ago, and I think he recommended that just before QE started - around 2007 or so? That's 15 years ago. People who followed his advice might be getting screwed really soon.
I think a lot of people are forgetting about that.
I think a lot of people are forgetting about that.
4
zzyzzx
2022 Apr 22, 10:09am
zzyzzx
2022 Apr 22, 10:09am
HunterTits says
Did you save a link to that?
Where are the PatNetters who claimed mortgage rates would not even get to 4%, let alone higher than that?
Did you save a link to that?
5
AmericanKulak
2022 Apr 22, 11:18am
AmericanKulak
2022 Apr 22, 11:18am
zzyzzx says
Your lips to God's ears.
50 points is still pretty weak. I'd like to see another 175 points and an end to the fed buying MBS's, at the very least.
Your lips to God's ears.
6
zzyzzx
2022 May 4, 11:31am
zzyzzx
2022 May 4, 11:31am
Just happened.
https://finance.yahoo.com/news/fed-fomc-monetary-policy-decision-may-2022-142723148.html?source=patrick.net
Fed raises interest rates by 0.50%
The Fed is now targeting interest rates in a range between 0.75% and 1.00%, with some Fed officials advocating for raising the target closer to 2.5% by the end of the year.
https://finance.yahoo.com/news/fed-fomc-monetary-policy-decision-may-2022-142723148.html?source=patrick.net
Fed raises interest rates by 0.50%
The Fed is now targeting interest rates in a range between 0.75% and 1.00%, with some Fed officials advocating for raising the target closer to 2.5% by the end of the year.
7
Al_Sharpton_for_President
2022 May 4, 12:40pm
Al_Sharpton_for_President
2022 May 4, 12:40pm
Yep, slow and steady, without any surprises. Plenty of advance notice.
10
clambo
2022 May 4, 6:02pm
If the free money from Uncle Sam (thousands of billions of dollars) caused inflation, then the solution is to stop giving free money to people, not raise interest rates.
Housing inflation can be caused by increased demand by the influx of foreigners which the government can also stop.
Housing inflation can be caused by increased demand by the influx of foreigners which the government can also stop.
11
zzyzzx
2022 May 5, 8:15am
zzyzzx
2022 May 5, 8:15am
I guess the stock market really doesn't like rate hikes. Already given up yesterday's huge gains.
15
Patrick
2022 May 6, 7:38am
Patrick
2022 May 6, 7:38am
zzyzzx says
Right. It's pretty predictable. Rates go up, stocks go down.
I guess the stock market really doesn't like rate hikes.
Right. It's pretty predictable. Rates go up, stocks go down.
16
FortwayeAsFuckJoeBiden
2022 May 6, 7:40am
if i can’t sell my old house for good price ill just rent it out. fuck i hate leaving property in california, we will see.
17
zzyzzx
2022 May 6, 8:18am
zzyzzx
2022 May 6, 8:18am
FortwayeAsFuckJoeBiden says
Sell it now.
if i can’t sell my old house for good price ill just rent it out.
Sell it now.
19
zzyzzx
2022 May 6, 8:40am
zzyzzx
2022 May 6, 8:40am
Did they actually say that future rate increases will only be a measly .25%?
20
GNL
2022 May 12, 5:52pm
GNL
2022 May 12, 5:52pm
DooDahMan says
You think historically low interest rates and high inflation are a good thing? Savers and retirees should be fucked every day?
Federal Reserve Chairman Jerome Powell on Thursday said he agrees with what many economists are saying — that the U.S. central bank was late to pivot policy and start raising its benchmark interest rate.
https://www.marketwatch.com/story/powell-would-have-been-better-for-fed-to-have-raised-interest-rates-a-little-sooner-11652391010?mod=home-page&source=patrick.net
No need to worry about enemies from abroad with this type of thinking here at home.
You think historically low interest rates and high inflation are a good thing? Savers and retirees should be fucked every day?
21
Hircus
2022 May 12, 6:03pm
Hircus
2022 May 12, 6:03pm
Does anyone feel the fed was late to raise without good reason? From a laymans perspective, I wonder why didn't they raise 2-4 months ago?
I heard someone say since in the past they said they wouldnt raise rates anytime soon, that they couldn't really go back on their word when inflation skyrocketed upwards past their estimates. Do they value the credibility of their word/predictions over their credibility of their ability to keep prices stable?
Maybe they actually wanted some inflation to happen for some reasons?
I heard someone say since in the past they said they wouldnt raise rates anytime soon, that they couldn't really go back on their word when inflation skyrocketed upwards past their estimates. Do they value the credibility of their word/predictions over their credibility of their ability to keep prices stable?
Maybe they actually wanted some inflation to happen for some reasons?
22
Booger
2022 May 12, 6:37pm
Booger
2022 May 12, 6:37pm
Hircus says
It's more likely that they are morons.
Maybe they actually wanted some inflation to happen for some reasons?
It's more likely that they are morons.
23
GNL
2022 May 12, 6:42pm
GNL
2022 May 12, 6:42pm
Why are they in control of rates at all?
All the power of the world lay in 3 things...1) controlling interest rates, 2) controlling the issuance of fiat and 3) controlling the message/media.
All the power of the world lay in 3 things...1) controlling interest rates, 2) controlling the issuance of fiat and 3) controlling the message/media.
24
zzyzzx
2022 Jun 9, 9:48am
zzyzzx
2022 Jun 9, 9:48am
Any guesses as to what happens next week?
50 basis point increase is probably already baked in?
50 basis point increase is probably already baked in?
25
stereotomy
2022 Jun 9, 10:29am
stereotomy
2022 Jun 9, 10:29am
They are just kicking the can down the road, the same thing they've been doing since 2002. It will get increasingly worse until we have a Volker consensus; i.e., "We have to destroy the village in order to save it."
Volker killed the pre-1980's U.S. industrial economy. What we got as a result was a "post-industrial" AKA FIRE economy. What's next for the post-post-industrial economy? NFT's for everyone? Kill me now.
Volker killed the pre-1980's U.S. industrial economy. What we got as a result was a "post-industrial" AKA FIRE economy. What's next for the post-post-industrial economy? NFT's for everyone? Kill me now.
26
Al_Sharpton_for_President
2022 Jun 9, 10:32am
Al_Sharpton_for_President
2022 Jun 9, 10:32am
The scarf lady and Fauci should be tried, and if found guilty, executed for crimes against humanity. It was the anti-science lockdowns these criminals promoted that shut down the economy resulting in Trump and Biden signing off on trillion dollar stimulus packages that sailed through Congress. The free money created gross distortions in the economy and is a leading cause of inflation. Rising fuel prices get baked into everything else. So inflation will continue and the Fed is still behind in trying to contain it.
The Fed will do the too little, too late, knee jerk response which will cool off the economy, maybe into recession. Asset prices are already falling. Unemployment will likely start kicking up.
If they kept the economy open, and took steps to protect the vulnerable elderly, and let the fatties reap what they had sown, we'd all be better off. But then Trump would have won in a landslide.
The Fed will do the too little, too late, knee jerk response which will cool off the economy, maybe into recession. Asset prices are already falling. Unemployment will likely start kicking up.
If they kept the economy open, and took steps to protect the vulnerable elderly, and let the fatties reap what they had sown, we'd all be better off. But then Trump would have won in a landslide.
Nick Timarios at the WSJ as some details: Fed’s Jerome Powell Seals Expectations of Half-Point Rate Rise in May
“It is appropriate in my view to be moving a little more quickly” to raise interest rates than the Fed has in the recent past, Mr. Powell said Thursday. “I also think there’s something in the idea of front-end-loading” the removal of stimulus, he said.
...
"It's too hot. It's unsustainably hot. It's our job to get it to a better place where supply and demand are closer together."
And from Jeff Cox at CNBC: Powell says taming inflation ‘absolutely essential,’ and a 50 basis point hike possible for May
"I would say 50 basis points will be on the table for the May meeting.”
...
“Our goal is to use our tools to get demand and supply back in synch, so that inflation moves down and does so without a slowdown that amounts to a recession,” Powell said. “I don’t think you’ll hear anyone at the Fed say that that’s going to be straightforward or easy. It’s going to be very challenging. We’re going to do our best to accomplish that.”
“It’s absolutely essential to restore price stability,” he added. “Economies don’t work without price stability.”
https://www.calculatedriskblog.com/?source=patrick.net