Article

2022-05-05 Economy

[CNBC] The Federal Reserve increased its benchmark interest rate by half a percentage point, in line with market expectations.

In addition, the central bank outlined a program in which it eventually will reduce its bond holdings by $95 billion a month.

The rate move is the largest since 2000 and is in response to burgeoning inflation pressures.

Fed Chairman Jerome Powell underlined the commitment to bringing inflation down but indicated that raising rates by 75 basis points at a time "is not something the committee is actively considering."
and as a bonus, oil (WTI) was back over $105/barrel today

Posted by Lord Garth 2022-05-05 00:00|| || Front Page|| [11129 views ] Top

#1 Couple years too late. The Fed no longer performs the function it was designed to do so its one of the bureaucracies that need to go.

Posted by Procopius2k 2022-05-05 08:01|| 2022-05-05 08:01|| Front Page Top

#2 A dirty secret is that the Fd knows that inflation is the key to using cheap money to pay off the long term debt from years ago. In relative constant value terms, its a technique to kick the can down the road until the whole fiat money scam finally fails and people see its just paper (or used to be).

That grim reckoning will likely be coincidental with the new episode of the Dark Ages, perhaps during the middle of the new Mini-Ice Age. Happy Sinko da Mayo optimists and sandwich lovers!

Posted by NoMoreBS 2022-05-05 11:46|| 2022-05-05 11:46|| Front Page Top

#3 This shit game is making E.T. look good.

-Federal Reserve has Entered the Game!-

Fuuuuuuuk.

Posted by swksvolFF 2022-05-05 14:18|| 2022-05-05 14:18|| Front Page Top

#4 Dow, NASDEQ, S&P all taking a big hit today.

Oil is up again.

Fed announcement + horrible productivity numbers + no confidence in US Treasury Dept or FED or OMB

Posted by Lord Garth 2022-05-05 15:27|| 2022-05-05 15:27|| Front Page Top

#5 The Fed is WAY behind the curve. They seem intent on repeating the errors of Arthur Burns and William Miller (Fed chairmen of the early and mid 1970s) who tried half-hearted measures to fight inflation. And who failed dismally, finally paving the way for the medicine Paul Volcker gave us.

The longer that the Fed (and the executive branch) delay a serious fight against inflation, the harsher the remedy will be.

Posted by Tom 2022-05-05 15:37|| 2022-05-05 15:37|| Front Page Top

#6 Does this mean the interest rate on my saving account will go up?

Posted by Seeking Cure For Ignorance 2022-05-05 19:09|| 2022-05-05 19:09|| Front Page Top

#7 seeking...

interest rates on saving accounts will probably go up a bit by mid summer, especially at the on-line banks

not that much however as US savings accounts became relatively bloated by the covid stimulus checks

Posted by Lord Garth 2022-05-05 19:49|| 2022-05-05 19:49|| Front Page Top

#8 Quantitative stiffening?

Posted by KBK 2022-05-05 20:00|| 2022-05-05 20:00|| Front Page Top

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