Fed Rate Announcement on Wednesday

[cawacko]

It does amount to something close to 3% over the last two years or so, but Inflation is still running at 8%, and it will be credit cards, spending, that will be effected first. But you are going to see slowdowns in growth and employment numbers

The Fed has always played a guessing game, difficult to get the actual balance right, and the consequences of anything they do doesn't happen overnight

There were people were hoping to hear Powell say today he's going to slow down increases going forward, but stuck to his guns that he will continue to raise rates until inflation comes down.

You remember this better than I but he does not want a repeat of what Aurther Burns did in the 70's, raising rates but stopping too soon before inflation was tamed because of the economy. No one wants to see a slowing economy and unemployment increase but Burns' attempt to toe that line failed. Volker had to come in and crush inflation.

Powell should have started raising rates last year. He failed thinking inflation was transitory. Now it sure seems he doesn't want to fail again thus is sticking with aggressive increases going forward.

 

[Darla]

Since we’re flashing back I just remembered Topspin. He was always a trip. Didn’t he love weed and the stock market and if someone else didn’t they were a ‘turbo lib’ or something like that? Haha

LOL yep. One of the funniest posters ever, almost always high. He used to (attempt) to call me the spinster, but he could never get it right and it always came out "the spinzer". He insulted me all the time but never vulgarly and I never cared, I laughed so hard at his posts.

 

[cawacko]

Oh, no, don't go there, I have asked him a number of times who is this "Revolution," and at best, when forced, all I get in return is "deep state," "globalists," "those people"

Especially in this instance because there is no set right-wing and left-wing position on rates. Bernanke was a Republican and Yellen a Democrat and yet their policies were nearly identical. Arthur Burns was a Nixon appointee and he was far more dovish than Volker, a Carter appointee.

What was interesting to me was hearing candidate Trump in '16 talk about the Fed and he rightfully called them out for their easy money policies and the bubbles they created. Of course once in office he was all over Powell to lower rates because President's, like all politicians, generally only care about the here and now and in this case letting the fallout of easy money policies happen on someone else's watch.

But yeah, I have no idea what the 'non-Revolution' thinks the Fed should do.

 

[cawacko]

LOL yep. One of the funniest posters ever, almost always high. He used to (attempt) to call me the spinster, but he could never get it right and it always came out "the spinzer". He insulted me all the time but never vulgarly and I never cared, I laughed so hard at his posts.

Elle Oh Elle, totally forgot about the spinster claims! That's right. Haha.

He was so funny when he was high and would announce he was rich. Maybe I'm making this up but I could swear there was someone who would respond, "but you live in Louisiana". And of course Topspin would tell them to F off. Hahaha.