Money for your parents but not for you.
Replace the Fed with an AI. They have a well defined objective function
Fed increases target rate to 3.75-4.00%
41–50 of 183 posts
Re: Fed increases target rate to 3.75-4.00%
#42This will do nothing for actually impacting inflation. Instead it will crash the economy. Real inflation seems to be due to price gouging by companies[0], combined with energy increases due to OPEC price fixing [1], and rent increases due to collusion [2] and corporate domination housing market [3]. Jerome Powell had no answers to the Senate Oversight committee when asked how increasing rates would actually reduce th…
This is the current talking point du-jour of the American progressive left, but I think it's safe to say the Fed knows what they're doing and have done this before.
Re: Fed increases target rate to 3.75-4.00%
#43Earlier quoted context omitted.
The way I see it, it is still rising. But that was hidden by the fact that oil & gas prices dropped during the last period which was largely due to dipping into strategic reserves pretty heavily. Unfortunately I don't think oil & gas will continue to drop, or even stay even going forward. Especially with the middle east cutting production.
Oil dropped in the US because the current administration is depleting the strategic reserve. It's almost gone but the current administration doesn't care. The current administration punched down Trump attempting to top off the reserve for $24/barrel. Once the reserve runs out we'll be at 5.50 a gallon again but midterms will be over and I'm sure the other party will get the blame.
There is also a Diesel shortage that's going to have some impact on next quarters GDP: https://oilprice.com/Energy/Energy-General/The-US-Diesel-Sho...
Re: Fed increases target rate to 3.75-4.00%
#44This will do nothing for actually impacting inflation. Instead it will crash the economy. Real inflation seems to be due to price gouging by companies[0], combined with energy increases due to OPEC price fixing [1], and rent increases due to collusion [2] and corporate domination housing market [3]. Jerome Powell had no answers to the Senate Oversight committee when asked how increasing rates would actually reduce th…
Raising rates will curb people’s savings and consumer cash in general. This WILL reduce inflation.
Re: Fed increases target rate to 3.75-4.00%
#45I just started to have enough money for a decent downpayment on a house when all this rate hike started. Now I'm basically priced out.
I don't understand this fear. I was in same boat over 10 years ago, when the household bubble popped, so did prices (over a few years period). Then my downpayment was like 30-40% of the home costs.
There are always people who want or need to sell, even if people who bought high hold on to their homes.
Re: Fed increases target rate to 3.75-4.00%
#46This will do nothing for actually impacting inflation. Instead it will crash the economy. Real inflation seems to be due to price gouging by companies[0], combined with energy increases due to OPEC price fixing [1], and rent increases due to collusion [2] and corporate domination housing market [3]. Jerome Powell had no answers to the Senate Oversight committee when asked how increasing rates would actually reduce th…
> Real inflation seems to be due to price gouging by companies
Yes, it is too bad that our previously benevolent corporations all decided to end that benevolence in the year 2021 and gouge prices.
> crash the economy for his buddies on Wall Street
Of course, exactly what Wall Street wants.
Re: Fed increases target rate to 3.75-4.00%
#47Earlier quoted context omitted.
This affects mortgage rates, but not housing prices. If anything, housing prices should decrease a bit as rates go up, since people tend to buy based on monthly payment which is house price + rate. Therefore, your down payment should be just as effective as it was before, particularly if it's enough to pay for much of the house and keep your monthly payment lower.
This should be happening, but prices do not seem to be falling in-line with what we would expect. I have no answer as to why this is.
Be more patient. Watch Canada and Australia.
Re: Fed increases target rate to 3.75-4.00%
#48Earlier quoted context omitted.
This affects mortgage rates, but not housing prices. If anything, housing prices should decrease a bit as rates go up, since people tend to buy based on monthly payment which is house price + rate. Therefore, your down payment should be just as effective as it was before, particularly if it's enough to pay for much of the house and keep your monthly payment lower.
This should be happening, but prices do not seem to be falling in-line with what we would expect. I have no answer as to why this is.
There is a lag.
Re: Fed increases target rate to 3.75-4.00%
#49Earlier quoted context omitted.
This affects mortgage rates, but not housing prices. If anything, housing prices should decrease a bit as rates go up, since people tend to buy based on monthly payment which is house price + rate. Therefore, your down payment should be just as effective as it was before, particularly if it's enough to pay for much of the house and keep your monthly payment lower.
This should be happening, but prices do not seem to be falling in-line with what we would expect. I have no answer as to why this is.
It just takes time. Even in 2008 prices took a few years to bottom out.
Re: Fed increases target rate to 3.75-4.00%
#50"I am once again asking for" a common sense explanation for how increasing interest rates will reduce the prices of retail food and gas. (This should be the new Deleuze meme.)
> "I am once again asking for" a common sense explanation for how increasing interest rates will reduce the prices of retail food and gas. It will not. The only way to reduce prices of oil/gas and fertilizers (for food) is to bring back the amount of oil/gas and ammonia that went offline due to Russia. There is no amount of digging anywhere in the world that will quickly replace this much lost natural resource. What…
Oil isn't a serious problem, neither is gasoline. The West can safely maintain the situation with Russia indefinitely.
Brent has been in the $90s for a while now. That's equivalent to $65-$70 from ten years ago, which also wasn't a problem then. It's very modestly elevated at present.
Natural gas may be a different matter, although the Europeans look like they can have that permanently solved over the next few years through diversification and greater energy conservation.