US Federal Reserve raises interest rates for first time since 2018
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Re: US Federal Reserve raises interest rates for first time since 2018
#2It's worth taking a look at the effective federal funds rate over time, which clearly shows how low it's been recently: https://www.macrotrends.net/2015/fed-funds-rate-historical-c...
Re: US Federal Reserve raises interest rates for first time since 2018
#3If you're a dummy like me, 25 bps means 0.25%.
Re: US Federal Reserve raises interest rates for first time since 2018
#4They did the absolute minimum to appear to be able to say they are dong something. With official inflation nearing 8%, this is nowhere near enough. SO far equity markets agree this is effectively nothing
Re: US Federal Reserve raises interest rates for first time since 2018
#5It's worth taking a look at the effective federal funds rate over time, which clearly shows how low it's been recently: https://www.macrotrends.net/2015/fed-funds-rate-historical-c...
I am sensing a pattern here.. just can't put my finger on it...
Re: US Federal Reserve raises interest rates for first time since 2018
#6It's worth noting that this is actually a rate target, not the rate. Previously, the rate floated between 0% and 0.25% based on a market. Now, it is going to be between 0.25% and 0.5%.
Re: US Federal Reserve raises interest rates for first time since 2018
#7It's worth taking a look at the effective federal funds rate over time, which clearly shows how low it's been recently: https://www.macrotrends.net/2015/fed-funds-rate-historical-c...
It seems interest rates lower during recessions. Right now we are already low and are raising which seems to be a different pattern. Is lowering interest rates a method to overcome a recession?
Re: US Federal Reserve raises interest rates for first time since 2018
#8They did the absolute minimum to appear to be able to say they are dong something. With official inflation nearing 8%, this is nowhere near enough. SO far equity markets agree this is effectively nothing
Isn't this the first of many hikes planned for 2022?
Re: US Federal Reserve raises interest rates for first time since 2018
#9They did the absolute minimum to appear to be able to say they are dong something. With official inflation nearing 8%, this is nowhere near enough. SO far equity markets agree this is effectively nothing
The Fed said to expect up to 7 increases this year.
Re: US Federal Reserve raises interest rates for first time since 2018
#10If you're a dummy like me, 25 bps means 0.25%.
Percent-of-a-percent is how I remember it.
More technically, a hundredth of a percentage point.