The FED is the most difficult problem the US faces says stable genius about the best people
- Thread starter Cuddles
- Start date
https://nationalpost.com/news/world...ecords-link-them-to-chinese-military-agencies
The retard came out in Japan and said US chip makers will restart selling to the chinese military cause Winnie told him to... He is out to destroy the US and any alliances it previously had, US is doomed if he is re-elected
The retard came out in Japan and said US chip makers will restart selling to the chinese military cause Winnie told him to... He is out to destroy the US and any alliances it previously had, US is doomed if he is re-elected
Deflation is death.
Deflation is the markets healthy correction from malinvestment ...malinvestment coming from artificially low interest rates ....investments that wouldn't be made if the interest rate wasn't artificially low... The chase for yield against the real benchmark...inflation....it buries leverage into the system...the lower the interest rates the the less of a raise in interest rates to create blow.outs.... buy ya no one likes rehab , the party ending, having all your assests cut on half of your.long....so ya if your net long like most everyone deflation doesn't seem like a good thing...
It is kind of odd. Obama had zero interest rates for 7 of his 8 years in office. The fed only raised rates twice during his presidency, and one was in Dec. of 2016 as he had one foot out the door. The fed has now raised rates 8 times since Trump won the election!
Despite the massive push by by the feds to raise rates, the economy has still been doing really well. We saw the best annual GDP & wage growth last year that we've seen in over a decade. For the first time in the history of our country we have more open jobs than people seeking employment to fill them. Just imagine what our economy would be doing if it weren't for 8 rate hikes since the election.
The real question that should be asked is "Why didn't the fed raise rates for 7 year under Obama?"
Despite the massive push by by the feds to raise rates, the economy has still been doing really well. We saw the best annual GDP & wage growth last year that we've seen in over a decade. For the first time in the history of our country we have more open jobs than people seeking employment to fill them. Just imagine what our economy would be doing if it weren't for 8 rate hikes since the election.
The real question that should be asked is "Why didn't the fed raise rates for 7 year under Obama?"
economic crash needing an injection of capital into businesses. Granted, the gravy train should've stopped way before 2016, but there's your answer. You don't lower rates when the economy is doing well.
- Between2008 and 2015, the Fed kept the rate at zero. Recession ended in June 2009.
2015: GDP = 2.9%, Unemployment = 6%, Inflation = 0.7%
Dec 17 0.5% Growth stabilized so Fed began raising rates.
2016: GDP = 1.6%, Unemployment = 4.6%, Inflation = 2.1%
Dec 15 0.75% Fed maintained steady increase in rates.
2017: GDP = 2.2%, Unemployment = 4.1%, Inflation = 2.1%
Mar 16 1.0% Fed was steady on its path of normalizing its benchmark rate.
Jun 15 1.25% ^
Dec 14 1.5% ^
https://www.thebalance.com/fed-funds-rate-history-highs-lows-3306135
So the bumps under Obama were 1.25% cumulative, the bumps under Trump are 1 % so far cumulative. Trump didn't have to deal w/the economy falling like a brick however.
Who really cares who cheerleader you are ... Dump the idea that intervention is the way out... There will be no way out of this , because it has instilled a behavior and mindset that leads to a type of risk taking buy government and big business and which everyone else pays through inflation
The interest rates were 0.25% (effectively zero) when Obama took office, and 0.75% when he left office. Interest rates were 0.75% when Trump took office, and they now sit at 2.5%. So rates were raised 0.5% over Obama's 8 years, and 1.75% over Trump's first 2.5 years.
Oddly enough, I sort of agree with Trump and the Fed on this issue. It felt like the Fed did everything they could to prop up the economy during the Obama years. Now it feels like they're doing everything they can to hold the economy down, but really they're just playing catch up because economic growth was so slow after the recession.
I would love to see interest rates dropped so that our economy can really explode, but we need that cushion for the next recession. IMO, these rate hikes are a necessary evil. I would've much preferred a much more gradual rate hike schedule though.