Fed Chairman Jerome Powell warns it will
be 'very challenging' to tame inflation
without steep job losses across the US
economy after hiking interest rates to
3.25% - the highest level since 2008
Daily Mail (UK) & Wires,
by
Keith Griffith
Original Article
Posted By: Imright,
9/21/2022 4:44:12 PM
The Federal Reserve has issued another super-sized increase to interest rates in a move intended to fight inflation, but which deepens the risk of a sharp economic downturn and job losses.
At the end of its two-day policy meeting on Wednesday, the US central bank raised its policy rate by 75 basis points for the third time, to a range of 3 percent to 3.25 percent, the highest level since the 2008 financial crisis.
The Fed is attempting to cool down the economy in order to tame rampant inflation, which remains stubbornly high at 8.3 percent -- but as interest rates climb, the path to a so-called 'soft landing' is narrowing.
Reply 1 - Posted by:
BeatleJeff 9/21/2022 4:54:56 PM (No. 1284099)
As per the usual, Powell flaps his jaw and the stock market crashes. Good thing I'm all in on bonds right now.
5 people like this.
Reply 2 - Posted by:
Lazyman 9/21/2022 5:18:31 PM (No. 1284113)
They will drop rates right before November for a stock market boost. Yes, the Fed is in the pocket of the swamp.
9 people like this.
Reply 3 - Posted by:
Starboard_side 9/21/2022 5:34:50 PM (No. 1284131)
I have a quick suggestion, open up the oil and natural gas production in the United States and stop limiting the supply of a key component to costs of goods sold (transportation costs).
Stop allowing the governments of Venezuela, Russia and Middle East to reap the financial benefits instead of U.S. entities.
14 people like this.
Reply 4 - Posted by:
stablemoney 9/21/2022 5:42:24 PM (No. 1284134)
Cut government spending in half, so people that produce things will have the money to produce things.
9 people like this.
Reply 5 - Posted by:
Dodge Boy 9/21/2022 6:03:16 PM (No. 1284138)
Suggest that everyone protect their 401k plans closely. Dont wait for CNBC to tell you what to do because it wilk be too late . Get out of stocks, mutual funds, and bonds soonest. And how are you doing with acquiring precious metals. 2023 is going to be an ugly year for investing and wealth building.
4 people like this.
Reply 6 - Posted by:
slipstik 9/21/2022 6:20:11 PM (No. 1284154)
This is the reward for a stolen presidency. The usurper in chief has gone to every length to DESTROY the United States before he is ultimately kicked out of office. He is leaving no resource available to rescue the nation from destruction.
And now congress is closing the last door on preventing the theft of the next presidency, the one Pence was too #$_&rdly to use when he had the chance.
The END is in sight people, and "UGLY" ain't the word for it.
3 people like this.
Reply 7 - Posted by:
Sanchin 9/21/2022 6:22:36 PM (No. 1284155)
In other words, this unelected official of an obtuse Foreign influenced organization is going to obliterate your savings and put you on the unemployment line. The spineless Republicans and Evil Democrats are going to stand aside and tell you how their hearts go out to you but they will do NOTHING to stop the massive spending and inane policies. Volcker tamed inflation not just with the increase of Interest rates but because Ronald Reagan lowered taxes and reduced regulation (two thins that are not being done now). We are being led to slaughter but by golly we are going to save every Ukrainian and Taiwanese with our money.
3 people like this.
Reply 8 - Posted by:
Kate318 9/21/2022 7:42:06 PM (No. 1284197)
When we bought our first home in 1984, the interest rate was 13%. We were able to get a VA loan for 11%, and considered ourselves lucky to get it.
3 people like this.
Reply 9 - Posted by:
MDConservative 9/21/2022 7:53:50 PM (No. 1284205)
At 3.25%, even 5% or 8%, money is "cheap" and plenty available for investment. The dam is broke and no number of these incremental interest increases will do. Double digits are in our future...eventually...someday...
2 people like this.
Reply 10 - Posted by:
DVC 9/21/2022 8:05:55 PM (No. 1284210)
With Demonrats in charge, the crash WILL continue.
If Repubs are elected and can stop some of the insanity, it may be merely very painful.
Major economic crash or MAYBE only very painful....no easy ways out of the hole they have dug us into.
1 person likes this.
Reply 11 - Posted by:
Jethro bo 9/21/2022 8:14:36 PM (No. 1284215)
Overheated economy? Really? Geez, every car dealership I drive by looks near out of business. No inventory to sell. Ford has almost a half million pick ups parked in parking lots in Kentucky. Ford can't gets chips to complete the vehicles. Ford isn't making money parking unfinished product. Dealerships have no inventory to sell. All the support industries in the Auto economy have less product. Go to a grocery store and note the empty selves. Gas through the roof. What heated economy!? A heated economy is an economy of plenty, not shortages. The economy isn't the issue. Consumer consumption isn't the issue. Bidenomics and Dem policies are the one and only reason for inflation. If the Rebublicans had a modicum of intestinal fortitude, they would balance the budget and pass resolutions cancelling Dem spending. Let Biden shut the goobernment down. Slash spending means less goobernment money competing with consumers and this will curb inflation quicker than the Fed. But responsible fiscal policy is the ultimate fantasy.
2 people like this.
Reply 12 - Posted by:
downnout 9/21/2022 8:34:50 PM (No. 1284223)
As we watch ever rising grocery bills and our retirement savings being destroyed, let us all thank Joe Biden and Jerome Powell. A pox on them!
1 person likes this.
Reply 13 - Posted by:
snowoutlaw 9/21/2022 9:06:50 PM (No. 1284243)
I see some people giving out investment advice here that is opposite to what I would do.
You do not want to be in bonds when interest rates are going up because the price of said bonds will drop as the interest rates go up, your investment will shrink.
The stock market is already down 20-30%, you should have sold a year ago when it was obvious all this was going to happen. Selling now may save you some losses but the bottom will come and unless you buy back in you will miss any gains off the bottom that will occur. You will not be able to time the bottom.
1 person likes this.
Reply 14 - Posted by:
danu 9/21/2022 9:46:01 PM (No. 1284255)
malpractise on the hoof
1 person likes this.
Reply 15 - Posted by:
Son of Grady 9/21/2022 9:53:18 PM (No. 1284258)
A soft landing outcome has come and gone.
The people that need to curb their spending is the U.S. government
not breaking the worth of the people. Powell can never cut enough as
long as Bidens energy policy is in place and spending continues.
Government stays rich, We stay poorer.
2 people like this.
Reply 16 - Posted by:
Son of Grady 9/21/2022 9:54:58 PM (No. 1284260)
Powell can never Raise enough...,
sorry.
3 people like this.
During Clinton and Obama, they forced the interest rate to near 0%. This makes the annual interest payment on the USA Debt much lower, and allows the leftist creepozoids to spend, spend, spend.
2 people like this.
Reply 18 - Posted by:
bighambone 9/21/2022 10:56:13 PM (No. 1284282)
Biden has been throwing out BS that he created 9 million new jobs, when in reality the jobs were there before the pandemic and are either being refilled by the people who held them before, or include a lot of people who are taking on two jobs to make ends meet. Whatever happened to the Biden crew BS claim that the inflation that the nation is facing is transitory?
1 person likes this.
Reply 19 - Posted by:
MickTurn 9/22/2022 1:42:55 AM (No. 1284319)
The Fed isn't going to tame squat. They need to drag Joey to the reality table!
1 person likes this.
Reply 20 - Posted by:
mifla 9/22/2022 3:41:14 AM (No. 1284368)
The Fed is telling us that they have no idea what they are doing.
0 people like this.
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