Fed Insider says Interest Rates will be Raised Repeatedly

So, he is predicting 4 increased in interest rates over the next year. This is one of the things I warned about before the election. If interest goes up to much people will have to pay noticeably more for car and home loans, which is bad for us and may decrease economic spending, but great news for the banks who will be getting a big raise along with their unnecessary tax cut. I guess the bright side is when the economy crashes again the fed will be able to spur spending by dropping rates, maybe.

www.bbc.com...

a reply to: CB328
Actually, it doesn't really take an insider to know this.

If interest goes up to much people will have to pay noticeably more for car and home loans,

Guess what? It also means that interest on savings will go up.

1. They need the economy to crash under Trump.

2. All that empty money they printed keeping the dollar floating and economy good for Obama needs to be removed from the pool somehow. Raising the rates is the best way to do that. So it has to be done sooner or later.

It also means that interest on savings will go up

Many Americans now live paycheck to paycheck, so I don't have any sympathy for that. Making money on checking accounts is sadly a relic of the past in our oligchary.

a reply to: CB328

Many Americans now live paycheck to paycheck, so I don't have any sympathy for that.

The tax cuts are going to change all that. Doncha know?

Making money on checking accounts is sadly a relic of the past in our oligchary.

My checking accounts have always been for convenience, not income. Money market used to do pretty well, before '08.


Point is, a certain level of inflation actually is desirable and an increase in interest rates goes hand in hand. Cheap money is just that. Cheap.

originally posted by: CB328

It also means that interest on savings will go up

Many Americans now live paycheck to paycheck, so I don't have any sympathy for that. Making money on checking accounts is sadly a relic of the past in our oligchary.

Many Americans depend on their savings for retirement, too, and the last few years have meant they had no "paycheck' to survive on at all. They have gone from being okay because they saved for their entire life and invested very carefully in CDs instead of volatile stocks to a hand to mouth existence. Interest rates on loans have been the lowest they have been since the fifties, so that's great if you want to buy stuff you can't really afford. There are "little guys" on both sides of this equation.

originally posted by: CB328
So, he is predicting 4 increased in interest rates over the next year. This is one of the things I warned about before the election. If interest goes up to much people will have to pay noticeably more for car and home loans, which is bad for us and may decrease economic spending, but great news for the banks who will be getting a big raise along with their unnecessary tax cut. I guess the bright side is when the economy crashes again the fed will be able to spur spending by dropping rates, maybe.

www.bbc.com...

Just what tax cuts are 'banks' getting? No different than other businesses tax cuts. Selecting/stressing banks is disingenuous. Interest rates will climb based on a heating up economy.

I'll take that over a continued artificial low rate in the attempts to keep what was left of our economy from crashing outright.

the Fed has been saying they are waiting for %3 GDP browth to raise interests rates and they have already raised them minimally.

My hope if that the cost of good goes down as goods will be cheaper to purchase overseas.

originally posted by: CB328
So, he is predicting 4 increased in interest rates over the next year. This is one of the things I warned about before the election. If interest goes up to much people will have to pay noticeably more for car and home loans, which is bad for us and may decrease economic spending, but great news for the banks who will be getting a big raise along with their unnecessary tax cut. I guess the bright side is when the economy crashes again the fed will be able to spur spending by dropping rates, maybe.

www.bbc.com...

Interest rates have been artificially low or nonexistent for almost a decade. It's the primary reason the stock market is where it's at in the first place, there was no other place to invest money and make a decent return. The end result of these low rates has been to create yet another stock market and real estate ( not as bad as the sub prime days) bubbles. A healthy economy can't sustain itself in the long run at near zero bank rates.

It's going to take some deft skill to get rates back to normal levels without hitting GDP.

originally posted by: CB328
So, he is predicting 4 increased in interest rates over the next year. This is one of the things I warned about before the election. If interest goes up to much people will have to pay noticeably more for car and home loans, which is bad for us and may decrease economic spending, but great news for the banks who will be getting a big raise along with their unnecessary tax cut. I guess the bright side is when the economy crashes again the fed will be able to spur spending by dropping rates, maybe.

www.bbc.com...

Odd that he is stating this right when the Saudis are being arrested. Made a thread that relates to this via Treasury Bonds and the bill passed allowing US citizens to sue the Saudis for 911....its all related. It's also going to be because of the previous administration. The Fed won't be able to do anything.

originally posted by: CB328

It also means that interest on savings will go up

Many Americans now live paycheck to paycheck, so I don't have any sympathy for that. Making money on checking accounts is sadly a relic of the past in our oligchary.

If you can make money on savings again, people will start saving. Right now, what's the point?

a reply to: toysforadults

My hope if that the cost of good goes down as goods will be cheaper to purchase overseas.

The state of the Dollar hasn't been helping toward that end. Not sure how interest rates relate to that.

And the same turds that ran the economy into the ground in 2008 are all still liquid and many enjoyed raises and bonuses and those that were held accountable all floated nicely w/their 'Golden Parachutes'

But this time it'll be different....

originally posted by: Phage
a reply to: toysforadults

My hope if that the cost of good goes down as goods will be cheaper to purchase overseas.

The state of the Dollar hasn't been helping toward that end. Not sure how interest rates relate to that.

Higher interest rates should increase the value of the dollar. Debatable if that's a good thing or not at moment.

a reply to: ScepticScot

Well, increasing the value of the dollar should make foreign goods cheaper driving down the cost of goods.

You would think.

Also that means the DOW will continue to go up and Bitcoin should stop going up as quickly as moving back into other investments should become more lucrative once again. You would think this would hit the gold and silver markets as well but they have been resilient this year.

originally posted by: toysforadults
a reply to: ScepticScot

Well, increasing the value of the dollar should make foreign goods cheaper driving down the cost of goods.

You would think.

Also that means the DOW will continue to go up and Bitcoin should stop going up as quickly as moving back into other investments should become more lucrative once again. You would think this would hit the gold and silver markets as well but they have been resilient this year.

Cheaper foreign goods would seem contrary to a lot of the rhetoric around economic policy in the US at the moment. Advantages & Disadvantages depending on what else is done.

Don't think it's clear that fiscal, monetary and trade policies are really running hand in hand.

Well, the reduction of interest rates is meant to help the economy when it is going down. The lowered rates are only temporary. If they don't raise them then they can not bring them down adequately to accomplish anything in the future when a reduction is needed.

I don't understand why people cannot see this. It costs money to lend money, less than one percent and the government is loosing money and they will be forced to increase taxes to cover the losses. People pushing a pencil do not work for nothing and computers and software to track all of that on a national level is costly.

We had a break for a while. If you want to complain about the cost of borrowing money, look at the people who get the money from the government to lend. They make a lot of money on the governments money lent to them. They get money at one and a half percent and lend it at five percent plus tack on all sorts of other charges. But even the banks have expenses, people to pay and technology to acquire. and then there are the people who are hacking people's accounts, people can't understand that these people who do that are causing higher interest rates. The bank or credit card companies have to absorb the cost of thieves as part of their lending and this increases the cost of our borrowing.

originally posted by: Phage
a reply to: CB328
Actually, it doesn't really take an insider to know this.

If interest goes up to much people will have to pay noticeably more for car and home loans,

Guess what? It also means that interest on savings will go up.

We haven't made very much on our savings in the last few years. Half a percent or so per year. It sucks. We are retired, we do not want to risk a lot of money in the stock market, we do not have the years to wait for it to recover if it crashes again.

a reply to: Phage

Guess what? It also means that interest on savings will go up.

Really? Is that why Banks pay out less than two percent interest but charge double digits for loans?

originally posted by: Phage
a reply to: CB328
Actually, it doesn't really take an insider to know this.

If interest goes up to much people will have to pay noticeably more for car and home loans,

Guess what? It also means that interest on savings will go up.

Anyone with half a brain doesnt put any savings into a bank unless:

a) You're portfolio is already well placed in the market and you have EXTRA cash to stash somewhere

b) You're poor and you think putting money into a savings account is the way to earn on it's interest.