Fed plans to raise rates starting in March
to cool inflation
Associated Press,
by
Christopher Rugaber
Original Article
Posted By: Imright,
1/26/2022 11:50:21 PM
WASHINGTON—The Federal Reserve signaled Wednesday that it will begin a series of interest-rate hikes in March, reversing pandemic-era policies that have fueled hiring and growth — and stock market gains — but also stubbornly high inflation.Chair Jerome Powell said at a news conference that inflation has gotten “slightly worse” since the Fed last met in December. He said raising the Fed’s benchmark rate, which has been pegged at zero since March 2020, will help prevent high prices from becoming entrenched.Seeking to calm fears that higher rates might hurt the economy, Powell said the central bank can manage the process in a way that prolongs growth and keeps unemployment low.
Reply 1 - Posted by:
Ribicon 1/27/2022 12:05:36 AM (No. 1052052)
Interest paid by banks on ordinary savings accounts should probably be around 10% to offset inflation and to pay savers for the use of the money (which banks in turn lend out), the norm for a very long time being the inflation rate plus 1% or a bit more. But it's far more profitable for banks to pay savers nothing at all, and on top of that levy fees at every opportunity.
11 people like this.
Reply 2 - Posted by:
Lawsy0 1/27/2022 12:27:43 AM (No. 1052061)
Since after WWII raising rates was the first stop gap to address inflation. Always. Why ask why?
3 people like this.
Reply 3 - Posted by:
ussjimmycarter 1/27/2022 6:50:48 AM (No. 1052180)
The national debt will not sustain anything above 4 or 5 percent! THAT is why we have low rates! Always will with our debt load! Which grows by the second!
6 people like this.
Reply 4 - Posted by:
hoosierblue 1/27/2022 7:21:55 AM (No. 1052204)
I think your right on #3. If they raise it, it wont be by much and certainly there wont be an noticeable raise in savings investment accounts.
3 people like this.
Reply 5 - Posted by:
watashiyo 1/27/2022 7:23:37 AM (No. 1052207)
Just do it! Best way to start a panic.
2 people like this.
Reply 6 - Posted by:
F15 Gork 1/27/2022 7:30:10 AM (No. 1052212)
Stop printing Monopoly money and live within your means.......naw, never happen!
6 people like this.
Reply 7 - Posted by:
Lazyman 1/27/2022 7:56:30 AM (No. 1052252)
All lip service. A 0.25% raise to stop 10% inflation.
5 people like this.
Reply 8 - Posted by:
bad-hair 1/27/2022 8:24:09 AM (No. 1052287)
Yeh, inflation has gotten "slightly worse". As in 4 DECADES worse, I seem to recall Carter era 16% mortgage rates. I paid them. That's what's coming wit all its handmaidens.
2 people like this.
Reply 9 - Posted by:
wakeupcall 1/27/2022 8:38:16 AM (No. 1052312)
Raising interest rates takes money away from the people, both payers and takers. The people yell give us more free money and Marxist Communist politicians respond buying more votes from serfs who don't know or care that the country is being taken away from them along with their taker life style. Welcome to Global Marxist Communist One World Government.
Meanwhile, the Global Marxist Communist democrats, republicrats GOPe, etc., control of government with their destroy the country with $10 Trillion spending plans over the next 10 years adds double digit inflation foreseeable for the next 10 years and longer, as they change America from free republic into a dictatorship Global Marxist Communist One World Government they, at this time, are calling 'A New World Order' which they have been working on for over 100 years.
1 person likes this.
Reply 10 - Posted by:
Paperpuncher 1/27/2022 8:40:15 AM (No. 1052317)
Oh gee, does that mean the rate in my savings account will go from .05% to .075%? Wow, I think the Mrs. and I should use all that money and go to an ice cream stand this summer. NOT!
1 person likes this.
Reply 11 - Posted by:
RuckusTom 1/27/2022 10:18:49 AM (No. 1052468)
0% interest on $30,000,000,000,000 in debt is a lot different than 10% interest on $30,000,000,000,000 in debt. That's $3,000,000,000,000 in interest alone. Might start planning on saying goodbye to such things as the military, social security, Medicare, Medicaid and food stamps - unless the plan is to just print more funny money and really mess things up and get prices like $100 a gallon in gas, $200 Big Macs, etc.
0 people like this.
Reply 12 - Posted by:
paral04 1/27/2022 11:22:56 AM (No. 1052553)
Exactly how is raising the cost of money going to cool inflation? It will just result in higher prices. Leave us alone!
0 people like this.
Reply 13 - Posted by:
JHHolliday 1/27/2022 1:39:51 PM (No. 1052722)
To really dent inflation, you have to do what happened in the Reagan years....8% to 20%. It was painful, but he stayed the course, and eventually we saw the economy take off again. This won't happen because, as many posters have pointed out, our feckless, drunken sailor spending government can't afford that sort of interest rate.
1 person likes this.
Below, you will find ...
Most Recent Articles posted by "Imright"
and
Most Active Articles (last 48 hours)