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(NBC News)   Federal Reserve: The economy is getting better so lets hike interest rates   (nbcnews.com) divider line
    More: Obvious, Monetary policy, Central bank, market participants, Interest rate, short-term interest rates, Inflation, Federal Reserve System, labor market  
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359 clicks; posted to Business » and Main » on 26 Jan 2022 at 4:35 PM (16 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



38 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-01-26 3:42:37 PM  
Subby:  Inflation is nearing double digits so let's do nothing.

/hurr
 
2022-01-26 3:47:04 PM  
Subby: I made a killing in this inflated market so therefore we have to keep it going forever!
 
2022-01-26 4:03:21 PM  
Dude, the fed is supposed to raise rates in a good economy to fight off inflationary pressures.

Lowering rates is for when the economy is bad and needs a pick me up.
 
2022-01-26 4:23:00 PM  
WHAT ABOUT MY GME STOCK!!! IT NO ONGER GOES TO THE MOON!!
 
2022-01-26 4:38:21 PM  
Look. If they did nothing, subby would complain about inflation.

Giving this a green is just gonna encourage some moron.
 
2022-01-26 4:40:12 PM  

Gubbo: Look. If they did nothing, subby would complain about inflation.

Giving this a green is just gonna encourage some moron.


You realize what site you are on, right?  It's built on rage clicks and encouraging the morons.
 
2022-01-26 4:42:33 PM  
The car is going straight, so let's let go of the wheel!
 
2022-01-26 4:48:24 PM  
I'm pretty sure that's the way economics work, subby.
 
2022-01-26 4:55:11 PM  
Why are they doing this? I've been told that inflation doesn't exist and if you think it does you're poor and watch Fox News. I guess JPow watches Tucker Carlson in his trailer.
 
2022-01-26 4:58:07 PM  

Metastatic Capricorn: The car is going straight, so let's let go of the wheel!


We pressed the car to go to 75mph

Now we ease off the gas and maybe tap the breaks?

UNPOSSIBLE! FASCISTS!
 
2022-01-26 4:59:21 PM  
We have two generations of people who have never seen much inflation - PANIC!  The Fed raises short-term interest rates to reduce inflation. We've never seen high interest rates - PANIC!

Go check out 1970-1980 if you wish to see what inflation can due to mess up the economy.  Hint: full-sized candy bars were a nickel in 1969, a quarter in 1980.  Took another 40 years for a triple.
 
2022-01-26 5:01:14 PM  

Gubbo: Look. If they did nothing, subby would complain about inflation.

Giving this a green is just gonna encourage some moron.


Hey, it's been a rough week and I could use the encouragement.
 
2022-01-26 5:04:10 PM  

Likwit: Why are they doing this? I've been told that inflation doesn't exist and if you think it does you're poor and watch Fox News. I guess JPow watches Tucker Carlson in his trailer.


Famed economist d. trump was fighting for negative interest rates before the election was stolen from him.  All would have been saved.  He went to The Wharton School of Business, you know.
 
2022-01-26 5:15:44 PM  

Likwit: Why are they doing this? I've been told that inflation doesn't exist and if you think it does you're poor and watch Fox News. I guess JPow watches Tucker Carlson in his trailer.


While there is some esteemed competition on this website, you are certainly in the top 5 of appropriate usernames.
 
2022-01-26 5:21:24 PM  

Gubbo: Likwit: Why are they doing this? I've been told that inflation doesn't exist and if you think it does you're poor and watch Fox News. I guess JPow watches Tucker Carlson in his trailer.

While there is some esteemed competition on this website, you are certainly in the top 5 of appropriate usernames.


I'm a great rapper?
 
2022-01-26 5:59:54 PM  
Three words:

About. Damned. Time.
 
2022-01-26 6:06:54 PM  

SpectroBoy: Subby:  Inflation is nearing double digits so let's do nothing.

/hurr


Raising interest rates doesn't really do jack shiat to bring prices down if the problem is that supply is constrained and demand is vastly outpacing it.

For example, people still need to buy cars, and higher interest rates on top of inflated prices due to a chip shortage just makes it even more painful for someone who can't wait to buy a new vehicle because their current ride broke down or got totalled.
 
2022-01-26 6:09:33 PM  
Yes.
 
2022-01-26 6:56:22 PM  

MadHatter500: Gubbo: Look. If they did nothing, subby would complain about inflation.

Giving this a green is just gonna encourage some moron.

You realize what site you are on, right?  It's built on rage clicks and encouraging the morons.


Along with a fanatical devotion to squirrel nuts.
 
2022-01-26 6:57:48 PM  

Jubeebee: MadHatter500: Gubbo: Look. If they did nothing, subby would complain about inflation.

Giving this a green is just gonna encourage some moron.

You realize what site you are on, right?  It's built on rage clicks and encouraging the morons.

Along with a fanatical devotion to squirrel nuts.


And... among the things Fark is built on include rage clicks, encouraging the morons, a fanatical devotion to squirrel nuts, and unapologetic alcoholism.
 
2022-01-26 6:59:42 PM  

Jubeebee: Jubeebee: MadHatter500: Gubbo: Look. If they did nothing, subby would complain about inflation.

Giving this a green is just gonna encourage some moron.

You realize what site you are on, right?  It's built on rage clicks and encouraging the morons.

Along with a fanatical devotion to squirrel nuts.

And... among the things Fark is built on include rage clicks, encouraging the morons, a fanatical devotion to squirrel nuts, and unapologetic alcoholism.


Ancient memes too.

Of the things Fark is built on, some of the most important include rage clicks, encouraging the morons--

you know what I'll show myself out
 
2022-01-26 7:12:55 PM  
There were farkers months ago pretty well predicting this. The rates have to come up, but slowly and gradually, especially at first, to keep from crashing things too badly. It is going to be a delicate process, but.. <cough> so far so good.

I might as well say, though, that the REALLY SPECULATIVE stuff is going to be tricky. What happens when you have bonds yielding 3% and Tesla stock or Bitcoin showing flat returns for a year or so? Is that sustainable? Or is everyone going to rush out of the speculative stuff in a mad rush a la Dotcom bust. I wonder if the FED can count on everyone to have DIAMOND HANDS when Tbills will give a higher return than Ethereum. Alternatively, what happens when the US government has to push up its bond rates to 3.5% just to get them all sold in a world where any new money gets sent straight to Dogecoin?

Interesting times. I even wonder if things are being managed, so much as being guessed at. And Fed officers are trading the market, so what is that going to do? We shall see soon enough.
 
2022-01-26 7:31:41 PM  
They have to raise rates so that there is some ammo for the next recession. Trump fired all the ammo trying to prop up the stock market during the Trump Slump, they have to be raised again.
 
2022-01-26 7:39:47 PM  

Mad_Radhu: SpectroBoy: Subby:  Inflation is nearing double digits so let's do nothing.

/hurr

Raising interest rates doesn't really do jack shiat to bring prices down if the problem is that supply is constrained and demand is vastly outpacing it.

For example, people still need to buy cars, and higher interest rates on top of inflated prices due to a chip shortage just makes it even more painful for someone who can't wait to buy a new vehicle because their current ride broke down or got totalled.


Well if you disagree with virtually ALL economists I guess I am really on the fence now
 
2022-01-26 7:48:05 PM  

dylanthomas: Likwit: Why are they doing this? I've been told that inflation doesn't exist and if you think it does you're poor and watch Fox News. I guess JPow watches Tucker Carlson in his trailer.

Famed economist d. trump was fighting for negative interest rates before the election was stolen from him.  All would have been saved.  He went to The Wharton School of Business, you know.


Does he have his MBA yet? Not that one, His Major Big Asshole.
 
2022-01-26 7:49:11 PM  

Mad_Radhu: SpectroBoy: Subby:  Inflation is nearing double digits so let's do nothing.

/hurr

Raising interest rates doesn't really do jack shiat to bring prices down if the problem is that supply is constrained and demand is vastly outpacing it.

For example, people still need to buy cars, and higher interest rates on top of inflated prices due to a chip shortage just makes it even more painful for someone who can't wait to buy a new vehicle because their current ride broke down or got totalled.


Higher rates depress prices period in homes and auto loans because all that matters is what can you afford every month.
 
2022-01-26 7:51:15 PM  
One of my big pet peeves in economics, people do not seem to realize you make decisions now for what's in the future. History if full of data and examples of interest rate policy and their results, and rates at 0 for this long would have made people hundreds of years ago concerned. But if anyone in government said we should raise rates or cut deficits before people see a problem actually come up they would be laughed off the stage. Government deficits are about to drop, and growth with it, so we don't need to cut deep for now at least.
 
2022-01-26 8:10:43 PM  

natazha: We have two generations of people who have never seen much inflation - PANIC!  The Fed raises short-term interest rates to reduce inflation. We've never seen high interest rates - PANIC!

Go check out 1970-1980 if you wish to see what inflation can due to mess up the economy.  Hint: full-sized candy bars were a nickel in 1969, a quarter in 1980.  Took another 40 years for a triple.


Lots of people also had fixed rate mortgages.....fixed at very low rates.  That 70s inflation burned a lot of the banks that held those mortgages.    People where paying back their loans with dollars that were worth a lot less than the dollars they borrowed.   I remember when my parents were getting ever more hysterical letters from the bank about how they could pay off their house in a few years if they switched form monthly payment to bi-monthly payments.   My father wanted to do just that until someone pointed out that him that he was making out like a bandit by paying off that mortgage under its original terms.
 
2022-01-26 8:19:36 PM  

Intrepid00: Mad_Radhu: SpectroBoy: Subby:  Inflation is nearing double digits so let's do nothing.

/hurr

Raising interest rates doesn't really do jack shiat to bring prices down if the problem is that supply is constrained and demand is vastly outpacing it.

For example, people still need to buy cars, and higher interest rates on top of inflated prices due to a chip shortage just makes it even more painful for someone who can't wait to buy a new vehicle because their current ride broke down or got totalled.

Higher rates depress prices period in homes and auto loans because all that matters is what can you afford every month.


Bringing the sticker price of the vehicle down makes the government inflation numbers look better, but the buyer is still going to be paying more in interest. Under normal circumstances, I'd trust classical economics, but right now we're in the middle of a weird black swan event that has caused catastrophic supply issues.
 
2022-01-26 8:20:30 PM  

2fardownthread: There were farkers months ago pretty well predicting this. The rates have to come up, but slowly and gradually, especially at first, to keep from crashing things too badly. It is going to be a delicate process, but.. <cough> so far so good.

I might as well say, though, that the REALLY SPECULATIVE stuff is going to be tricky. What happens when you have bonds yielding 3% and Tesla stock or Bitcoin showing flat returns for a year or so? Is that sustainable? Or is everyone going to rush out of the speculative stuff in a mad rush a la Dotcom bust. I wonder if the FED can count on everyone to have DIAMOND HANDS when Tbills will give a higher return than Ethereum. Alternatively, what happens when the US government has to push up its bond rates to 3.5% just to get them all sold in a world where any new money gets sent straight to Dogecoin?

Interesting times. I even wonder if things are being managed, so much as being guessed at. And Fed officers are trading the market, so what is that going to do? We shall see soon enough.


You're not getting the big picture.  What's the biggest problem facing the 1% now?  Rising wages for the peons...er, 'workers'.    The great resignation is what the media calls it, but the owner class sees it as the peasants getting uppity.  Can't have that.  Raising the interest rates will put an end to the worker slobs making insane demands...like demanding they be paid a living wage....because with those higher interest rates, we get higher unemployment.
 
2022-01-26 8:37:50 PM  
Hah. We've actually got 20-something adults walking this country who don't realize the Fed exists to be the party pooper of an overheating economy, swooping in to raise interest rates making it harder to borrow money and thus lowering the value of houses, cars, etc.

Those 20-something's don't realize this because they've never seen the Fed actually perform that function in their lives.
 
2022-01-26 8:44:39 PM  
The fed should have been quietly raising interest rates the minimum amount every quarter for the last 6 years.

They should also be slowly increasing the minimum reserve amounts that banks need to hold.
 
2022-01-26 9:03:57 PM  

SpectroBoy: Mad_Radhu: SpectroBoy: Subby:  Inflation is nearing double digits so let's do nothing.

/hurr

Raising interest rates doesn't really do jack shiat to bring prices down if the problem is that supply is constrained and demand is vastly outpacing it.

For example, people still need to buy cars, and higher interest rates on top of inflated prices due to a chip shortage just makes it even more painful for someone who can't wait to buy a new vehicle because their current ride broke down or got totalled.

Well if you disagree with virtually ALL economists I guess I am really on the fence now


"The curious mind embraces science; the gifted and sensitive, the arts; the practical, business; the leftover becomes an economist."
 
2022-01-26 9:42:42 PM  

Jubeebee: Jubeebee: MadHatter500: Gubbo: Look. If they did nothing, subby would complain about inflation.

Giving this a green is just gonna encourage some moron.

You realize what site you are on, right?  It's built on rage clicks and encouraging the morons.

Along with a fanatical devotion to squirrel nuts.

And... among the things Fark is built on include rage clicks, encouraging the morons, a fanatical devotion to squirrel nuts, and unapologetic alcoholism.


You made me snarf my Picpoul...
 
2022-01-26 10:40:44 PM  
J.Pow said he isn't ready to do anything and kept covid on the radar. Rates increase when the tapering is over, and the tapering isn't over yet and neither is BA2.

To remark, remember the money furnace running full blast Monday? Someone threw $50B worth of puts into the fire to snuff out the meltdown, all in about a 30 minute window. Not saying it was the Fed, but only someone with practically unlimited money and no worry of margin calls would or even could have made that bet.

/fark your UVXY calls
//fark your SPY puts
///money printer keeps going brrr
 
2022-01-27 6:50:42 AM  

Mad_Radhu: SpectroBoy: Mad_Radhu: SpectroBoy: Subby:  Inflation is nearing double digits so let's do nothing.

/hurr

Raising interest rates doesn't really do jack shiat to bring prices down if the problem is that supply is constrained and demand is vastly outpacing it.

For example, people still need to buy cars, and higher interest rates on top of inflated prices due to a chip shortage just makes it even more painful for someone who can't wait to buy a new vehicle because their current ride broke down or got totalled.

Well if you disagree with virtually ALL economists I guess I am really on the fence now

"The curious mind embraces science; the gifted and sensitive, the arts; the practical, business; the leftover becomes an economist."


So "hurrrr" it is
 
2022-01-27 8:53:26 AM  
Economy grew 6.9% in the last quarter OMG IT"S OVERHEATING
 
2022-01-27 11:19:15 AM  

rubi_con_man: The fed should have been quietly raising interest rates the minimum amount every quarter for the last 6 years.

They should also be slowly increasing the minimum reserve amounts that banks need to hold.


Taxes on wealth should also increase to close the budget gap.  Enacting single payer health care would free up a huge amount of money to consumers to fill in the gap left by federal spending cuts.
We won't do either though.
 
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