residualsquare
Banned
Self explanatory.
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Federal funds rate
- Thread starter residualsquare
- Start date
upsciLLion
Diamond Member
It really ought to be raised, but I think it will be left as is.
residualsquare
Banned
Do you mean lowered?
AmpedSilence
Platinum Member
I think they will leave it as is or drop it 0.25%, even though that would be terrible to do.
(900th post, yay!)
(900th post, yay!)
dullard
Elite Member
CPI: up 2.36% from year ago. Since this is low, and since this is the Fed's primary focus, there is a good argument for interest rates to go down as it won't overheat the economy too much to cause inflation.
PPI: up 4.0% from year ago. But, the PPI is a tad high, thus there is an argument that interest rates should go UP to stem off this problem. I tend to think the Fed looks at the PPI less than the CPI.
Economy: up 3.5% in latest quarterly data. That is right were it should be. There is a good argument to keep interest rates steady.
Political pressure for possible future economic pains: shouldn't be there, but I bet there is massive pressure to drop rates. Even though the economy health isn't a primary focus (inflation is the primary focus), the political pressure very well could be sufficient to drop rates.
My prediction: a 0.25% drop and steady in the next two sessions. I don't know which one will be Tuesday and which one will be next meeting. If I flip a coin it says 0.25% drop on Tuesday and steady next session.
PPI: up 4.0% from year ago. But, the PPI is a tad high, thus there is an argument that interest rates should go UP to stem off this problem. I tend to think the Fed looks at the PPI less than the CPI.
Economy: up 3.5% in latest quarterly data. That is right were it should be. There is a good argument to keep interest rates steady.
Political pressure for possible future economic pains: shouldn't be there, but I bet there is massive pressure to drop rates. Even though the economy health isn't a primary focus (inflation is the primary focus), the political pressure very well could be sufficient to drop rates.
My prediction: a 0.25% drop and steady in the next two sessions. I don't know which one will be Tuesday and which one will be next meeting. If I flip a coin it says 0.25% drop on Tuesday and steady next session.
upsciLLion
Diamond Member
I mean raised. The dollar is pretty weak right now, and we'd be inviting capital flight if we buried it any further. IMO that'd have worse repercussions than pissing of a bunch of people on Wall Street.
AnonymouseUser
Diamond Member
I hope to hell they raise it too.
Dr. Detroit
Diamond Member
I'm voting for 0%, no change!
My stocks want the rate to go lower, my CD's want the rate to go higher.
Personally, I would appreciate a higher interest rate as I'm tired of the sensless borrowing and debt and people refusing to accept personal responsibility.
My stocks want the rate to go lower, my CD's want the rate to go higher.
Personally, I would appreciate a higher interest rate as I'm tired of the sensless borrowing and debt and people refusing to accept personal responsibility.
AccruedExpenditure
Diamond Member
This thread shows how clueless AT is about investing ROTFLMAO.
upsciLLion
Diamond Member
The role of the central bank is to target inflation, not jack off investors.
AccruedExpenditure
Diamond Member
Looks at replies to thread. Notes rate was dropped .5%. Laughs to self again.
-AE
maddogchen
Diamond Member
if you had replied to this thread before the rate drop with a prediction of .5% you'd have some credibility but since you didn't, you're just making yourself look like another arrogant ass on the internet.
JeffreyLebowski
Lifer
But I'm an American, I don't have to account for my actions. It is all society's fault and I should be given handouts for my mistakes.
LegendKiller
Lifer
Looks at utter flippancy with regards to inflation, currency, and overall long-term economic health, then wonders why people want to repeat the late 1970s and early 1980s.
Because they fail to learn from history and are morons for repeating it.
alkemyst
No Lifer
yeah and many do not understand how the fed fund / prime rate tie and how it does really nothing for new mortgages (which many were hoping it would). What it does is help those with adj. rate mortgages tied to the PRIME rate (many are not though) and help everyone with credit cards and lines of credit to free up cash to help make their oppressive mortgage payments.
What it does though at the same time is reduce the value of money out there. This change could cause larger potential problems for everyone rather than just those that bought too little house for too much.
I was in that boat. I had to make a compromise to what I really wanted and the value it was to me.
What it does though at the same time is reduce the value of money out there. This change could cause larger potential problems for everyone rather than just those that bought too little house for too much.
I was in that boat. I had to make a compromise to what I really wanted and the value it was to me.
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