Fed increases target rate to 3.75-4.00%
federalreserve.gov
Fed increases target rate to 3.75-4.00%
1–10 of 183 posts
Re: Fed increases target rate to 3.75-4.00%
#2Not much to say here since this was foretold / expected.
All eyes on the 2:30pm press conference, where people will hope to divine the future from Powell's statements. I'm going to bet ~40 minutes of "Inflation isn't at 2% yet and we're committed to reducing inflation to that level".
I think what people really want to know is, where do these rate-increases end? In Sept. 22nd meeting, Powell thought 4.5% was roughly where things would end. Is the target rate higher now? Inflation is still strong, job numbers are also strong. Are we looking at additional hikes to 5% as we enter May 2023 or so??
Re: Fed increases target rate to 3.75-4.00%
#3Not a huge increase. Inflation is under control in the sense it's not rising, but they need to still pull a ton of money out of the economy; or let it ride.
Powell's speech doesn't matter at all until we see the results of midterms.
Re: Fed increases target rate to 3.75-4.00%
#4"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.)
Re: Fed increases target rate to 3.75-4.00%
#5"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.)
By reducing demand. I guess.
Re: Fed increases target rate to 3.75-4.00%
#6Not a huge increase. Inflation is under control in the sense it's not rising, but they need to still pull a ton of money out of the economy; or let it ride. Powell's speech doesn't matter at all until we see the results of midterms.
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.
Re: Fed increases target rate to 3.75-4.00%
#7You should see the insane jumps in spdr futures right now.
Re: Fed increases target rate to 3.75-4.00%
#8I dont get it. Prices are rising because fossil fuels are more expensive.
How do interest rate hikes fix that?
Re: Fed increases target rate to 3.75-4.00%
#9I dont get it. Prices are rising because fossil fuels are more expensive. How do interest rate hikes fix that?
[deleted]
Re: Fed increases target rate to 3.75-4.00%
#10"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.)
It won't reduce the prices. It will merely reduce the rate of increase of those prices.