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US Federal Reserve raises interest rates for first time since 2018

theguardian.com

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Re: US Federal Reserve raises interest rates for first time since 2018

#91

Post by sillyquiet »

thehappypm wrote: post #72
MR4D wrote: post #65

Earlier quoted context omitted.

It’s even worse - if the Fed actions tank the markets, then millions of retirees who have been enjoying high market values are screwed and have no other source of wealth or income. I do not envy the position the Fed is in.

Oh no! Boomers will lose 401(k) value! The horror!

What a horrific ageist and bigoted comment.

This literally could mean the difference between living independently or not for a lot of people.

Not to mention everybody working today with a 401k as their retirement plan will lose value no matter their age, which means they have to work longer than planned. This is a real life impact to a lot of people.

Re: US Federal Reserve raises interest rates for first time since 2018

#92

Post by fuzzer37 »

MR4D wrote: post #65
mactitan wrote: post #54

The Fed is trapped: It can’t raise too much since trillions of debt rely on very low rates. If it doesn’t raise enough then inflation will cause a recession.

It’s even worse - if the Fed actions tank the markets, then millions of retirees who have been enjoying high market values are screwed and have no other source of wealth or income. I do not envy the position the Fed is in.

Won't somebody please think of the poor poor boomers with millions of equity in their houses!

Cry me a river.

Re: US Federal Reserve raises interest rates for first time since 2018

#93

Post by aeyes »

mywittyname wrote: post #57
ceejayoz wrote: post #42

Earlier quoted context omitted.

They don't raise rates rapidly, as that can cause a shock. They're expecting to dribble small increases out regularly over the next year. If you chart inflation and interest rates you'll see the close relationship: https://www.gzeromedia.com/the-graphic-truth-50-years-of-us-...

They have been "expecting" to raise rates for years now. Most of the time, they chicken out, and last time they went through with it (2018), the Fed Chairman was replaced with someone who was well known to be "dovish" on rate increases.

I don't follow your argument, the feds interest rate consistently increased from the end of 2017 until Covid hit. When Powell started it was at 1.4% and got up to 2.4% in July 2019, more than one year after he took office.

Re: US Federal Reserve raises interest rates for first time since 2018

#95

Post by colechristensen »

mactitan wrote: post #54

The Fed is trapped: It can’t raise too much since trillions of debt rely on very low rates. If it doesn’t raise enough then inflation will cause a recession.

That debt was already sold at low rates. Now it's going to get inflated away. New debt will be more expensive, old debt will be losing effectively 10% of its value as the price of everything else goes up.

Re: US Federal Reserve raises interest rates for first time since 2018

#96

Post by thehappypm »

mactitan wrote: post #54

The Fed is trapped: It can’t raise too much since trillions of debt rely on very low rates. If it doesn’t raise enough then inflation will cause a recession.

A recession may be all right. Americans have a gigantic amount saved up and so long as it’s mild enough it’ll probably strengthen the dollar.

Re: US Federal Reserve raises interest rates for first time since 2018

#97

Post by jcranberry »

anonporridge wrote: post #74
MR4D wrote: post #65

Earlier quoted context omitted.

It’s even worse - if the Fed actions tank the markets, then millions of retirees who have been enjoying high market values are screwed and have no other source of wealth or income. I do not envy the position the Fed is in.

It's rough. On the one hand, retirees bring nothing of real value to the economy. We serve them because of the obligations they built up over their working careers. But, they get the focus of attention because a) they have all the money, b) they have all the time to be engaged in politics, and c) they vote. But they're purely an extractive cost center. A kind of economic parasite that keeps getting bigger and bigger…

You think retirees are keeping all their savings in cash in their mattresses or something?

Re: US Federal Reserve raises interest rates for first time since 2018

#98

Post by throwawayboise »

colordrops wrote: post #76
thehappypm wrote: post #72

Earlier quoted context omitted.

Oh no! Boomers will lose 401(k) value! The horror!

Phrased less sarcastically: "Millions of retirees won't have enough money to survive until they pass away."

Or:

Your elderly parents need to move in with you because they cannot afford to live on their own.

Re: US Federal Reserve raises interest rates for first time since 2018

#99

Post by thehappypm »

xienze wrote: post #77
thehappypm wrote: post #72

Earlier quoted context omitted.

Oh no! Boomers will lose 401(k) value! The horror!

You won’t be laughing when you find out it’s your responsibility to bail them out.

Sadly this is probably the case.

Re: US Federal Reserve raises interest rates for first time since 2018

#100

Post by thehappypm »

kipchak wrote: post #75
thehappypm wrote: post #72

Earlier quoted context omitted.

Oh no! Boomers will lose 401(k) value! The horror!

Unfortunately most people with 401(k)s are in SPY as the default, boomers or not

Time in the market > timing the market. It’ll go back up.
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