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Feds raises rates

T

thunderroller

Senior member
i'm sure i'll get affected by this in some way or other but can't see any immediate direct impact of the rate hike. Can you? Are you directly feeling the heat of the rate hike? Just curious...
 
it is a sign the economy is starting to pick up. They raise the rate to slow the economy down and keep inflation low.

We wont see the effects of this for months.
 
Originally posted by: Todd33
Ya, they have better slow that economy down. Whoa boy!
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The economy is only bad because Bush is the President and you don't want him to be. Gee, people in factories are getting laid off.. no kidding.. nobody wants to pay $100 for a pair of jeans. Gee, Tech people got laid off.. no kidding, nobody can afford to pay people 100k a year for a company that doesn't make a profit.

For everyone else, the economy is fine.. and for those who used to work in factories and used to work in high tech industries, they are finding jobs elsewhere.. otherwise unemployment would be much higher.

The world economy is changing.. thats not Bush's fault.
 
Wow Crimson if defensive 🙂

Too bad the economy is only good for corporate profits, while real wages go down and medical cost go up. I'm so glad the right votes on gay marriage and abortion while the free market cronies put the slap down on everyone but the rich. If the sheep of the nation took their gaze off the wedge issues for five minutes they would realize how bad thing have been going for twenty years.
 
Originally posted by: Todd33
Wow Crimson if defensive 🙂

Too bad the economy is only good for corporate profits, while real wages go down and medical cost go up. I'm so glad the right votes on gay marriage and abortion while the free market cronies put the slap down on everyone but the rich. If the sheep of the nation took their gaze off the wedge issues for five minutes they would realize how bad thing have been going for twenty years.
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As the biggest basher of people who don't read factcheck.org, I'd strongly suggest you go there before stating that wages are down. This debunked fact is continually thrown out... Maybe I'm going to have to start shouting trite remarks that the libs use every time someone that opposes my view states something that's been debunked.
 
wow.. i was just interested in the hike's immediate direct impact on our individual life. hmm.. and it ended up triggering bush-kerry bashing. 🙂
 
the immediate result is that banks to pay more money to the fed when they don't meet their reserve requirements.
 
Originally posted by: ElFenix
the immediate result is that banks to pay more money to the fed when they don't meet their reserve requirements.
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The 2nd result is that most peoples' credit card and line of credit rates just went up by 0.25%.
Mortgage rates were unaffected today.

The Fed raised the Funds rate not because the economy is necessarily picking up, but because rates were already too low for too long, and they could not "accomodate" that kind of rate policy any longer.

The effects are already visible, the rate increase was expected and had already been priced into most markets.
 
Also, low interest rates devalue currency. In the short term, devalued currency does not affect import prices due to contracts. However, after about 18 months, this leads to strong inflationary pressures.
 
Originally posted by: Genx87
it is a sign the economy is starting to pick up. They raise the rate to slow the economy down and keep inflation low.

We wont see the effects of this for months.
Click to expand...

Yes, more illegal aliens are getting jobs and paying sales taxes.
 
Originally posted by: Sasha
Originally posted by: Genx87
it is a sign the economy is starting to pick up. They raise the rate to slow the economy down and keep inflation low.

We wont see the effects of this for months.
Click to expand...

Yes, more illegal aliens are getting jobs and paying sales taxes.
Click to expand...


wondering if its a good thing or a bad thing?
 
Originally posted by: Garuda
Also, low interest rates devalue currency. In the short term, devalued currency does not affect import prices due to contracts. However, after about 18 months, this leads to strong inflationary pressures.
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Correct. Which is partly why oil prices are going up. Oil is traded in US dollars and the dollar has been devaluing internationally, leading to inflation in the home market (as reflected in high gas prices, which lead to higher prices on most other goods).

The Fed has been "talking up" the economy well of late, but the reality is that they had to raise rates even if we were mired in the Great Depression.
 
I thought that the Fed raising rates was an action designed to stem inflation? Which looks like was on the rise JAN 2004 - JUN 2004 and then started retreating again...

2004 JAN 1.93% FEB 1.69% MAR 1.74% APR 2.29% MAY 3.05% JUN 3.27% JUL 2.99% AUG 2.65%
 
The Fed can raise interest rates even if the economy is struggling as a measure to boost consumer confidence. If people think the economy is healthy, then they make it healthy by spending. Consumer driven economics mean the economy is only as bad as people think it is.
 
Originally posted by: CycloWizard
The Fed can raise interest rates even if the economy is struggling as a measure to boost consumer confidence. If people think the economy is healthy, then they make it healthy by spending. Consumer driven economics mean the economy is only as bad as people think it is.
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our economy is based on borrowing to an extent, I don't think it's healthy at all but that's my opinion.
 
Originally posted by: alphatarget1
Originally posted by: CycloWizard
The Fed can raise interest rates even if the economy is struggling as a measure to boost consumer confidence. If people think the economy is healthy, then they make it healthy by spending. Consumer driven economics mean the economy is only as bad as people think it is.
Click to expand...

our economy is based on borrowing to an extent, I don't think it's healthy at all but that's my opinion.
Click to expand...
Well, yes, it's more complicated than I made it out to be, but the primary driving force is still the almighty consumer dollar.
 
Originally posted by: CycloWizard
Originally posted by: alphatarget1
Originally posted by: CycloWizard
The Fed can raise interest rates even if the economy is struggling as a measure to boost consumer confidence. If people think the economy is healthy, then they make it healthy by spending. Consumer driven economics mean the economy is only as bad as people think it is.
Click to expand...

our economy is based on borrowing to an extent, I don't think it's healthy at all but that's my opinion.
Click to expand...
Well, yes, it's more complicated than I made it out to be, but the primary driving force is still the almighty consumer dollar.
Click to expand...

I'm not an econ major but it feels like as if we're borrowing money to p!ss away to other countries (namely china and japan) because of our huge deficits. we need to beef up our exports and leech money from other countries, not the other way around. We can't run our economy on that platform, at least for cities.

Farming areas should do fine though, even though the EU b!tches about GE crops all the time.
 
And today the yield on the Benchmark 10 year bond fell below 4% for the first time since April.
 
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