FED may raise rate by .75%

Discussion in 'Wall St. News' started by Ayn Rand, Jun 13, 2022.

  1. Ayn Rand

    Ayn Rand

    Anyone think the FED might shock and awe with a .75% hike? Market seems to smell something.

    Also I don't think there is any form of PPT out there. Biden et al want to lower the value of 401K's to reduce spending - neg wealth effect.

    Diver down. Next few days will be interesting.
  2. ET180


    I think I found one area where Biden has actually been successful at bringing down inflation...the stock market. And it's been a while since I heard some idiot advocate for MMT.
    smallfil, nooby_mcnoob and Ayn Rand like this.
  3. smallfil


    Jerome Powell too much of a wimp. Got talked to by Joe Biden recently. He will not dare defy the powers that be. So, expect a 0.50% interest rate hike. He has to raise it a bit to make it seem he is fighting inflation but, way behind the 8 ball. This inflation will continue to rage out of control because oil is inflationary and the sanctions the US and Europe imposed on Russian oil will drive oil prices even much higher. Higher oil prices then, a recession following right after. Demand for products will go down as the US consumer is tapped out. No excess monies for leisure or non-necessities left when you have to pay for food, gas, rent, utilities, mortgage or rent, etc.
    Ayn Rand likes this.
  4. If MMT is responsible for these wild ass markets, I will 100% support MMT till the day I die.
  5. TheDawn


    You never know. They might choose to hold off the rate increase just to "save the market". The Fed is known to chicken out at the last minute, bowing to pressures from everywhere even from China nowadays LOL when they are supposed to be independent. This is the test of Mr. Powell's nerves and his spine. Does he have the nerve of steel to do what's right or does he have the spine of jello to do what's convenient?

    At the end of the day, whatever economic theories all serve the purpose of politics.
  6. MMT is no way contradictive of current conditions, and and merely says that when inflation is rising government should spend less. I.e. the suboptimal policy situation that MMT proponents were identifying in the pre-COVID years, where the government needed to spend more, no longer exists; hence nobody mentions MMT because now everybody agrees that we need to reduce inflation, regardless of view on MMT.

    And MMT did claim that 0% interest rate was stupid all along, and that gov fical expenditures were a better way to go than inflating financial assets with QE, for inciting real economic activity.
    Last edited: Jun 13, 2022
  7. Buy1Sell2


    Agree in toto.
  8. Good...the Yen carry trade is still in effect....Wall Street miwork and stop drinking the Kool aid and take off their rose colored glasses. Maybe the US saving rates will increase....

    Völkernomics 101