what happens if ST interest rates go up ?

L

luisHK

With Hoenig today saying ST rates should go to 1%, and Bullard talking in the same vein, what is the chance of it happening, and when ?

Besides what will happen to stocks once it's announced ? Market doesn't seem worried today, but I've seen the charts of sp500 spiking up when a surprised rate cut was announced and the contrary wouldn't be pretty :(

hat do you reckon ?
 
Quote from luisHK:

With Hoeing today saying ST rates should go to 1%, and Bullard talking in the same vein, what is the chance of it happening, and when ?

Besides what will happen to stocks once it's announced ? Market doesn't seem worried today, but I've seen the charts of sp500 spiking up when a surprised rate cut was announced and the contrary wouldn't be pretty :(

hat do you reckon ?
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What would happen to Obama's re-election chances if rates went to 1%? I don't think it would be good for Obama so the rates will probably stay at current levels.
 
Quote from Roark:

What would happen to Obama's re-election chances if rates went to 1%? I don't think it would be good for Obama so the rates will probably stay at current levels.
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You make a valid point but at the same time what a pathetic world we live in now when a politician's election chances are threatened by rates of just 1%.

It sums up the current economic malaise perfectly.
 
Kocherlakota mentionned the rate increase today, it seems the fed is preparing the market to it. Not sure what's worse for Obama, a rate increase or high inflation. How do you think the market will react if that increase happens ?
 
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