Federal Reserve raises rates by 0.75% • Hacker News Board

Re: Federal Reserve raises rates by 0.75%

#181

Post by susanasj » Wed, Jun 15, 2022, 7:24 PM UTC

mark_l_watson wrote: post #17

You can argue either side to this, and make a good case. My personal preference is to trigger a recession and reduce inflation. The easy cop-out solution is to say a "big f*ck off" to pensioners, lower middle class, and poor people and let inflation soar, but I believe that long term this would be more destructive to the general economy. Better take the long term view here and not kick the can down the street.

I don't think it's that simple. Lower middle class and poor people have debt, and inflation is good for making debt less valuable in real dollars. Pensioners, maybe, but social security is indexed to inflation if I'm not mistaken? I wouldn't be surprised if many public and private pensions are as well.

This is much more a move in favor of the rich that are owed money by the poor imo.

Re: Federal Reserve raises rates by 0.75%

#182

Post by Nemi » Wed, Jun 15, 2022, 7:25 PM UTC

Supermancho wrote: post #147

bpodgursky wrote: post #112

Earlier quoted context omitted.

Have you asked for a raise?

People at my company have, in all-hands meetings. Is the company going to raise our salaries to compensate from the widely acknowledged inflation that's going on, given the company nets billions a year? No comment.

Companies rarely increase wages of existing employees commensurate with inflation. You get the appropriate inflation-adjusted increase only when you switch jobs. It is the one bit of leverage you have as an employee - I would suggest using it. Complaining to management feels good but gets you nowhere.

Re: Federal Reserve raises rates by 0.75%

#183

Post by queuebert » Wed, Jun 15, 2022, 7:25 PM UTC

cjbgkagh wrote: post #54

nostromo wrote: post #22

Earlier quoted context omitted.

A key driver to inflation is that wages for lower-income workers was finally starting to rise. Tanking the economy will hurt these people the most. But yes, inflation would flatten.

I don’t know anyone who has had their salaries keep pace with inflation. And I presume the lack of pay rises is the cause for all the industrial action I keep hearing about.

CEO pay has more than tracked inflation.

Re: Federal Reserve raises rates by 0.75%

#184

Post by bojangleslover » Wed, Jun 15, 2022, 7:25 PM UTC

djbusby wrote: post #12

morninglight wrote: post #7

> Seniors, should reap the benefits of higher bank savings rates after years of piddling returns. Not to any significant degree. Bank rates won't come close to offsetting the effect of inflation. The big winner will be the IRS, as intended. .

How does IRS win here?

Inflation is 8.6% but they adjusted the tax brackets by 3%.

https://taxdude.substack.com/p/inflation-is-a-double-stealth...

Re: Federal Reserve raises rates by 0.75%

#185

Post by bpodgursky » Wed, Jun 15, 2022, 7:25 PM UTC

Supermancho wrote: post #147

bpodgursky wrote: post #112

Earlier quoted context omitted.

Have you asked for a raise?

People at my company have, in all-hands meetings. Is the company going to raise our salaries to compensate from the widely acknowledged inflation that's going on, given the company nets billions a year? No comment.

Companies aren't going to do sweeping COL raises voluntarily. You should directly ask your manager, they most likely have the flexibility to make it happen.

Re: Federal Reserve raises rates by 0.75%

#186

Post by FabHK » Wed, Jun 15, 2022, 7:26 PM UTC

towaway15463 wrote: post #98

QuarterReptile wrote: post #57

Earlier quoted context omitted.

I think you would need monarchy (or something more tyrannical) to get that. Democracies seem reliably short-sighted. The personal responsibility of taking on debt is so thoroughly attenuated in a democracy that piling on ($90k per citizen and counting, in the US) debt is the expedient thing to do, and it's seemingly impossible to overcome the electoral price paid for trying to reject that expedient option.

You should pay more attention. They planned to start hiking rates in ‘21 when inflation broke 2% but in their infinite wisdom they deemed it “transitory” and kept rates low and now look where we are.

To be fair, there was no war in 2021 (involving huge oil/gas/wheat exporters).

Re: Federal Reserve raises rates by 0.75%

#187

Post by Supermancho » Wed, Jun 15, 2022, 7:26 PM UTC

wolframhempel wrote: post #99

The really worrying thing to me is our inability to accept that we (as in humankind) are rather rubbish at running complex systems. A good analogy is to think of the economy as a still lake. If you throw a rock into it, you know that it will create concentric circles of waves. You throw a second rock and you know that its waves will interfere with the first. But now the waves create oscillating patterns and now they…

> with an almost infinite set of variables and we seem continuously surprised when things get out of hand

This was never a matter of an overcomplicated system. The results were obvious (and some believe intentional) from the start of QE. A choice was made to take an economic hit later, rather than sooner, by those in power.

Re: Federal Reserve raises rates by 0.75%

#188

Post by willcipriano » Wed, Jun 15, 2022, 7:27 PM UTC

Supermancho wrote: post #147

bpodgursky wrote: post #112

Earlier quoted context omitted.

Have you asked for a raise?

People at my company have, in all-hands meetings. Is the company going to raise our salaries to compensate from the widely acknowledged inflation that's going on, given the company nets billions a year? No comment.

Stop thinking of yourself as a employee and start thinking yourself as a services vendor. They aren't going to raise your rates of their own accord, you need to go out and generate leads for that to happen.

In a high inflation environment you may find yourself in a position where you have to shift more resources to sales rather than operations. Your current situation with it's pre-inflation salary might just not meet your business goals. Just like they may choose to spend additional income from inflation adjustments on things other than your salary, you can choose how much time you devote to things that are important to you depending on how they reward you.

Re: Federal Reserve raises rates by 0.75%

#189

Post by bpicolo » Wed, Jun 15, 2022, 7:27 PM UTC

blip54321 wrote: post #108

paulpauper wrote: post #75

The fed is aggressively raising rates as the economy goes into recession. The last time something similar to this happened was in 1980. A very bad unusual situation, but on the other hand, the worst may be over. I think Google, Microsoft, Facebook, Amazon, and other large cap tech stocks are good buys at these levels and are more immune to macro factors (compared to other sectors ) and can hedge inflation by raising…

I have mixed feelings on tech stocks. I feel like the general competence has gone down, and that makes them vulnerable. Google is a shitshow right now. I don't think they can do B2B. Chrome Extensions. GSuite Free. Google Workspace App security audits. I can list of dozens of other disruptions like that. No one trusts them. At the same time, cost structure is astronomical; employee count has grown exponentially, to m…

If amazon’s main issue is the scams and knockoffs, how is aliexpress the cure?

Re: Federal Reserve raises rates by 0.75%

#190

Post by jaywalk » Wed, Jun 15, 2022, 7:27 PM UTC

pfisherman wrote: post #131

QuarterReptile wrote: post #57

Earlier quoted context omitted.

I think you would need monarchy (or something more tyrannical) to get that. Democracies seem reliably short-sighted. The personal responsibility of taking on debt is so thoroughly attenuated in a democracy that piling on ($90k per citizen and counting, in the US) debt is the expedient thing to do, and it's seemingly impossible to overcome the electoral price paid for trying to reject that expedient option.

We had someone who was attempting something like tyrannical rule between 2016 - 2020 when the economy was going gangbusters. In his infinite wisdom he passed a ginormous tax cut, and then publicly lambasted the fed chair for modestly raising interest rates. Not that administration is solely to blame for our predicament. The failure goes back even before the previous administration who had a mandate to make radical ch…

Wow, he passed a ginormous tax cut all on his own? Without the House and Senate both passing it first and sending it to him to sign?? That's extremely tyrannical! I can't believe I never heard about this, do you have any more info I can look at???