Fed Chair Powell Joins the Inflation Conversation

I doubt Trump likes Powell. Raising rates that much on Trump was sabotage.

 

Higher longer!

 

Int rates are at their 50 year avg. so the new earthers now think time began 20 years ago?

 

I would be interested to see the comparison of the 50 year average to the 50 year average minus the Volcker years and the lowest years to see how how the average looks without the extremes.

 

Why “wonder”? Charts are available. Anyone can see the charts and look where the fed has had rates going back to 1951 (which I guess was when they resumed “control” over rates).

Federal Funds Effective Rate

 

5% int rate, 4% UE seems pretty perfect….if the economy starts to go south we’ve plenty of cushion to boost it.

 

Not just the Volcker years but the Great Recession and pandemic years as well

 

That’s why I keep you guys around!!

 

5% int rate. 4% UE. 3.2% inflation.

Basically a Goldilocks economy in 2024, other than 1st time homebuyers and housing affordability perhaps (and that’s a biggun’ for sure).

 

Looks like 4-5% is a pretty healthy place to be on interest rate.

 

int rates from 1971 - 2024 averaged 5.42%. I bet googles ai will give it to you for any period you want

 

i just googled it & got this

The average interest rate in the United States from 1971 to 2024 was 5.42%. The federal funds rate, which is the interest rate at which banks and credit unions lend reserve balances to each other overnight, has seen a range of highs and lows over the years:

• All-time high: 20% in March 1980
• Record low: 0.25% in December 2008

 

While 5% in many ways isn’t bad, it is bad when you have govt debt to GDP over 100% and projections it will continue to climb.

 

Disagree, more like 7-10% is preferred. It's good historically at 4-5% because we are at a deficit every year that keeps growing and keeps devaluing the dollar. Great if your rich, not so great for the middle class and poor. Only way to fix that is to make borrowing so painful for congress, they stop doing so.