Federal Reserve Raises Rate .75%

I was expecting a 1.00% increase.

Fed unleashes another big rate hike in bid to curb inflation | AP News

We are having stagflation at the highest level in 41 years, and this is the best the fed can do:

.25% March 16
.50% May 4
.75% 6/15
.75% 7/27

It's going to take much higher interest rates to tame this ugly inflation/recession two-headed monster. Inflation last reported at 9.1% will likely at least in part shrug off the higher rate and it is far from enough to bring down inflation significantly. To really hit inflation hard and to get this over with quickly, rates have to be much closer to the inflation rate. Otherwise, this stagflation we are in now is going to linger for several more years.

This also presumes that the federal government can control itself fiscally. So far, Joe Manchin is all that stands in the way of another $1+ trillion-dollar spending bill.

As an added bonus this week, we will find out definitively tomorrow that the US GDP has shrunk for two consecutive quarters. No, of course, it's not a recession, until it happens to you.

The next federal reserve consideration for a rate hike comes on September 21. If we get another very high inflation report for July reported in August, I would not be surprised if we get an unscheduled increase in August, but I'm not predicting it. I did predict a 1.00% increase for today, but that didn't work out.

 

The communist green new deal won't be in it.

 

Really? Two consecutive quarters of negative GDP growth, hyperinflation for basic goods and services June over June, and a job market with less people working than in January 2020 is the tipoff to me.

Yeah, you are right though. Fresh corn here went down from .75 an ear to .69 an ear.

I saw only arguments between .75% and 1.00%. I was predicting 1.00% as rates are entirely too low with the late start to fighting inflation by the federal reserve. The feds believed all of the transitory and soft-landing views you are pushing until it was too late. We are way past a soft landing happening now.

 

Argue fair, don't put words in my mouth.

Unlike your party, I think all excessive federal spending is inflationary. Democrat members in congress apparently haven't realized you can't keep printing money without the offsetting inflationary increases. It's bad enough that the federal government only cuts increases and never the budget, but to spend like a drunken sailor on Saturday night is insane.

 

There are numerous definitions that support my views.

NBER is a joke. They will admit the US is in recession when it is so obvious that even you can't deny it.

Keep your promise, don't respond.

 

Republicans and democrats can be equal opportunity spenders, just usually different things.

The difference is that at no time in Trump's 4 years did inflation exceed 2.8%. If anything, the federal reserve was quick to raise rates and then slow lowering rates effectively taking away the punch bowl a bit too soon, none of this transitory business.

With inflation at 9.1% and a slowing economy, it should be impeachable to spend more on big new bills or to raise taxes. It could get really ugly if that were to happen.