1. The Federal Reserve raised rates today? 2. Was it appropriate and necessary? 3. Will it be damaging? 4. Will they be engineering a Trump take down? Remember how the media helped take down GHW Bush. Months of story after story on the tough economy. It seems to me with all the CEOs warning about their fears of a recession and the stall in the housing market a Fed hike was a pretty dangerous move.
GW Bush started this nonsense with Greenspan when they failed to regulate the overheating housing market in 2004 and instead kept their foot mashed down on the accelerator. The subsequent crash of the housing market in many areas justified keeping rates low during the Obama era. Now the Fed conveniently wants to raise rates before the economy has recovered. Check the Las Vegas housing market, very soft and starting to unravel. It is imprudent of the Federal Reserve to raise rates as the country just begins to add jobs and when there is *clearly* no upward wage pressure or inflation. It looks politically motivated.
I see sizeable gaps on that chart and remember the bubbles that had formed during those time periods.
useful chart but this time the Fed and the govt engineered a bailout of the banks instead of allowing the creative destruction that our economies use to rely upon. What we have is a lack of transparency. 1. We have no idea how much money the FED has been creating the last few years. 2. The zero interest rate and low interest rate moves they made in the past are like a drug. Now that we are addicted, we should not be attempting to decrease supply just as CEOs are seeing a recession on the horizon. 3. Luxury real estate markets like that in NYC is already going negative. Other real estate markets are slowing down. I don't think We need the FED making more mistakes and cratering this economy. Besides the FED should not be worried about relatively low unemployment rates. We have a few decades of wage stagnation to correct until we start seeing the standard of living going up for Americans.
Well, there might be something to be said about having some dry powder. If the sh*t really hits the fan, its probably better to have rates at 2.5% or 3% than zero. Might as well build your powder-store while things are halfway decent right?
Your logic is sound in general. But in this case I see the move akin to a forest ranger saying lets prevent future fires by burning down this section of forest during Santa Ana winds.
Hmmmm. I'll need to dwell on that one. I don't think we're at the end of the world though. I'm actually positioned long overnight. Rare for me.
Fed really does not care who is president since they can outlast any President so if they raised rates today a measley .25 basis points, they did it on their own for their own reasons. rates are still relatively low so not going to cause any real damage. Markets are down because they get way ahead of themselves...
The Fed is doing us a favor by letting the market down slowly. Interest rates are not going to stave off the coming recession. Raising rates is the right thing to do because they’re just goin to have to cut them 12 to 18 months out anyway. The Fed is looking at the real economy not some Trumptards version of spin and idiot economics, and the fundamentals are saying there is not much growth in the future and lots of pressure for tightening. There is political instability and just straight up insanity growing throughout the world. We live in a world with Brexit and Trump - the Brits are fully intent on shooting themselves in the face and Trump is intent on blowing up the US economy. It’s only a matter of time.