Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Fed hikes rates as inflation worries push up bond yields

reuters.com

Post reply on HN
Print view View original

61–70 of 245 posts

Re: Fed hikes rates as inflation worries push up bond yields

#61

Post by marcosdumay »

dabinat wrote: post #27

Prediction: this causes a recession in two years, right after a Democrat wins the White House, who will be blamed for it. The economy will turn around after a few years, just in time for a Republican to win and claim they fixed it. This is how Republicans have a reputation for being economically savvy despite actual evidence to the contrary, because the general population doesn’t understand that economics runs on a t…

It's interesting that this article doesn't have the rate...

(It moved from 3.5% - 3.75% to 3.75% - 4%, the US uses a range, not a fixed number.)

But this one is something that gets results almost immediately. We will see what it does in 2 or 3 months, not years.

Re: Fed hikes rates as inflation worries push up bond yields

#62

Post by dyauspitr »

dabinat wrote: post #27

Prediction: this causes a recession in two years, right after a Democrat wins the White House, who will be blamed for it. The economy will turn around after a few years, just in time for a Republican to win and claim they fixed it. This is how Republicans have a reputation for being economically savvy despite actual evidence to the contrary, because the general population doesn’t understand that economics runs on a t…

This exact scenario has happened 4 times in my living memory already.

Re: Fed hikes rates as inflation worries push up bond yields

#63

Post by evanwolf »

verelo wrote: post #11

Edit: Whoever the hell flagged this lol....people were complaining the parent comment wasn't helpful so I took time to write a thoughtful response with citations. You can't win around here. --- The counterintuitive part is that a lower Fed rate doesn't necessarily mean cheaper borrowing for the government. The Fed sets an overnight rate; someone lending for ten years cares about inflation and interest rates over thos…

I thought bumping up the prime rate slowed consumer spending. But the recent price hikes are because supply is hosed (oil, tariffs), not that demand has been bidding up prices. So how is this supposed to help?

Re: Fed hikes rates as inflation worries push up bond yields

#65

Post by bdangubic »

dabinat wrote: post #27

Prediction: this causes a recession in two years, right after a Democrat wins the White House, who will be blamed for it. The economy will turn around after a few years, just in time for a Republican to win and claim they fixed it. This is how Republicans have a reputation for being economically savvy despite actual evidence to the contrary, because the general population doesn’t understand that economics runs on a t…

I would upvote this 100x if I could. There are decades of evidence of this same thing happening but people be people'ing every 2-4 years :)

Re: Fed hikes rates as inflation worries push up bond yields

#66

Post by Scottn1 »

dabinat wrote: post #27

Prediction: this causes a recession in two years, right after a Democrat wins the White House, who will be blamed for it. The economy will turn around after a few years, just in time for a Republican to win and claim they fixed it. This is how Republicans have a reputation for being economically savvy despite actual evidence to the contrary, because the general population doesn’t understand that economics runs on a t…

At what point into a presidential term does it become their actual mess? And is there evidence of a time delay? Because by that argument, the mess we are in would been caused by Democrats.

Re: Fed hikes rates as inflation worries push up bond yields

#67

Post by c0nducktr »

base698 wrote: post #54
hdgvhicv wrote: post #24

Earlier quoted context omitted.

It’s worse than no ability to fix it — he caused a large part of it for unclear reasons

Covid? Half the money printed happened under his watch the first admin. Biden continued the other half. Now we have yet another war to make matters worse. What are you proposing be done to fix it?

Well I sure wouldn't have started another war.

Re: Fed hikes rates as inflation worries push up bond yields

#68

Post by throwawaysleep »

im_down_w_otp wrote: post #55

It bugs me that the Fed has no mechanism to really deal with supply-shock driven inflation. Prices are shooting up, but not strongly correlated to money supply at the moment. They’re shooting up because there are a dozen or more entirely capricious and totally self-inflicted supply-shocks due to bizzaro tariff “policy”, disastrous military adventurism, and general erosion of the USD the prime vessel for international…

Isn't the goal then demand destruction?

Re: Fed hikes rates as inflation worries push up bond yields

#69

Post by EPWN3D »

tossandthrow wrote: post #25
iamnothere wrote: post #9

Earlier quoted context omitted.

Higher rates means financing/borrowing is more expensive. Mortgage rates will go up, possibly pushing home prices down. This is neutral for buyers because of higher rates, but bad for sellers. Loans (personal or business) will be harder to come by. Layoffs, or at least hiring freezes, are more likely. Companies will move into a defensive rather than an growth mode. Higher unemployment will lead to more desperation, a…

Neutral for buyers? Absolutely not. As a buyer you rather want to take out a loan in a high interest rate environment than a low interest rate environment, given that the monthly payment is the same. 1000 usd extra paid towards your mortgage actually makes a difference when the rate is 15% compared to when it is 1.5%

There's also "date the rate, marry the price". If you're a buyer and think that rates are going to come down within a couple of years, you can lock in the lower price of your home for property tax purposes and then refinance when rates are lower.

But a lot of people bought in 2024 expecting that to happen.

Re: Fed hikes rates as inflation worries push up bond yields

#70

Post by hedora »

dabinat wrote: post #27

Prediction: this causes a recession in two years, right after a Democrat wins the White House, who will be blamed for it. The economy will turn around after a few years, just in time for a Republican to win and claim they fixed it. This is how Republicans have a reputation for being economically savvy despite actual evidence to the contrary, because the general population doesn’t understand that economics runs on a t…

Exactly like “biden’s” inflation from the zero interest rate policy.
Post reply on HN