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Fed hikes rates as inflation worries push up bond yields

reuters.com

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

#71

Post by ndesaulniers »

daviding wrote: post #60
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…

(deleted, political, no point)

> The important thing is really who's on the girl's soccer team

I've not heard this expression before; can someone explain it to me?

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

#72

Post by Aboutplants »

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…

We will enter a recession in less than two years, the R timing on this one isn’t going to work out

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

#73

Post by [deleted] »

jameslk wrote: post #57
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…

Both parties are responsible for the inflation and debt. Fiscal policy is largely driven by congress, not the president

[deleted]

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

#74

Post by TheJoeMan »

andy_ppp wrote: post #23

So, during the Great Depression who ended up doing well? What can be applied to today?

Unfortunately, during that time is when they screwed around with the gold confiscations. So the best option would have been to illegally hoard gold until they struck the statute down?

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

#75

Post by eej71 »

beej71 wrote: post #53
vasco wrote: post #45

Earlier quoted context omitted.

Easy fix, have the democrats lose the next election and you break the spell. It's all military industrial complex anyway.

I wish they'd lost in 2020, that's for sure.

Hello similarly named account.

I basically agree. I don't care for DJT, but I can see how getting his "second term" underway after his first one could have been better. His four years away allowed him to stew and plan and respond.

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

#76

Post by Supermancho »

theginger wrote: post #14
leptons wrote: post #3

Earlier quoted context omitted.

This comment isn't helpful. Please explain for those of us without a degree in economics.

The comment could be more about the politics of this not the economics, Donald Trump has made it clear he is very against this sort of rate rise

What Trump says is never clear. It's also not a reliable source for what behavior the administration (or even he) exhibits.

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

#77

Post by iamflimflam1 »

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%

This really doesn’t make sense.

Higher interest rates mean the monthly payment is higher. You need to pay back the principal + the interest.

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

#78

Post by baxtr »

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…

I thought about this as well. Maybe you have to slow down the entire economy to compensate for the missing supply.

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

#79

Post by MarkusQ »

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…

> the Fed has no mechanism to really deal with supply-shock driven inflation.

Inflation is just a change in the ratio of money to stuff. You can reduce inflation by increasing the stuff or reducing the money, and cause it by doing the opposite. There's no requirement that the solution is applied to "the same factor", either works.

Sure, if you're wanting to assign blame or worried about externalities these things start to matter. But monetary policy is a perfectly fine tool for dealing with inflation, regardless of the cause.

Note: inflation causes prices to rise, but that doesn't mean that all changes in price are caused by inflation.

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