Fed hikes rates by a quarter percentage point, indicates increases are near an end

[beefheart]

How cute, Mycroft has a new word that he is flogging...

 

[beefheart]

That's one way to look at it I suppose . . .

Well for me, its an upside, I don't have any debt, everything is paid off, and I have a nice chunk of cash in an market rate account. Its only just north of $150 a month I'm earning in interest, but...its money...

 

[iguanaman]

Corporate profits hit record high in third quarter amid 40-year-high inflation​

Following a two-quarter dip in 2020, quarterly profits have surged by more than 80 percent over the last two years, from around $1.2 trillion to more than $2 trillion, adding weight to arguments that the private sector is driving inflation by exploiting consumer expectations to keep prices elevated.

The “Fed should make clear that rising profit margins are spurring inflation,” Paul Donovan, UBS chief economist of global wealth management, wrote in the Financial Times in November, asking Fed Chairman Jerome Powell to elucidate this point as he shepherds the U.S. central bank to raise interest rates and slow economic activity.

“Companies have passed higher costs on to customers. But they have also taken advantage of circumstances to expand profit margins. The broadening of inflation beyond commodity prices is more profit margin expansion than wage cost pressures,” he wrote, adding that “resilience in demand has given companies the confidence to raise prices faster than costs.”

https://thehill.com/business/375645...in-third-quarter-amid-40-year-high-inflation/

So you find it amusing that corporations are gouging consumers and increasing profit margins when they are already reeling from price increases from supply shortage and commodity speculation? You have a strange sense of humor.

 

[Gimmesometruth]

I wasn't talking about current levels of energy prices. I was talking about the cause of our inflation.

"Our current inflation isn't caused by "less dollars chasing goods". It caused by increased cost of producing goods (energy)."

I always have to say "again", oil prices have been dropping since June of 22...and inflation peaked in April of 22, You tried to move the discussion back to "2020". I have no idea what "production" CURRENTLY is affected by the price of oil in 2020.

 

[SMTA]

Risky and speculative capital investment doesn't raise inflation rates.

The fact is, inflation is here to stay no matter what the Fed does and inflation rates won't go back down to pre-Biden puke levels until Trump is back in office.

If you are one of the Americans who are getting hammered by inflation, you know what to do.

That post is pure ignorant bullshit, as usual, and stoked with lies.

 

[Ishm]

Risky and speculative capital investment doesn't raise inflation rates.

The fact is, inflation is here to stay no matter what the Fed does and inflation rates won't go back down to pre-Biden puke levels until Trump is back in office.

If you are one of the Americans who are getting hammered by inflation, you know what to do.

We have a heavily Trump supporting Republican controlled House right no. So what are they proposing to do about inflation?? We've been waiting for a while now to see the magic bullet budget they are promising. Unfortunately it seems to be rather delayed. Maybe once they have finished chasing Hunters laptop and forcing raped women to carry their rapists babies, and 'investigating' politics in govt, and trying to prevent state DAs from performing their legal duties, and ................ Maybe they might find enough time to show us how much better inflation would be with their magical budget.

As for DT himself... Who promised to 'fix' the deficit and slash the federal debt when they last got elected? See how that ended up!

 

[mrdeltoid]

Here's what I see:

1] Inflation has been on a downward slope since late last year.

2] Banks are starting to crash, due at least in part to having an upside-down rates balance sheet.

3] Rate increases take up to 6 months to filter through the economy.

4] We've recently experienced a unique post-pandemic bounce, which now seems to be normalizing.

Given the above, I'm not only fine with the Fed taking a break from rate hikes - but actually prefer they do!

I'm with you. I wanted to by a house in the late 70's. When Carter left office it was like 19%. Believe it or not, I didn't buy till 1986.

 

[vegas giants]

Risky and speculative capital investment doesn't raise inflation rates.

The fact is, inflation is here to stay no matter what the Fed does and inflation rates won't go back down to pre-Biden puke levels until Trump is back in office.

If you are one of the Americans who are getting hammered by inflation, you know what to do.

Now that is hilarious

 

[Gateman_Wen]

Fed hikes rates by a quarter percentage point, indicates increases are near an end

The Federal Reserve on Wednesday released its decision on interest rates following a two-day meeting.

www.cnbc.com

--

Finally. It looks like rate hikes may coming an end. The emphasis of course is on, "may".

I've seen copy stating the recent bank defaults did what the rate hikes didn't - tamping inflation by slowing down the influx of risky and speculative capital into the economy. I can't speak to that, but it is an interesting theory.

Regardless, I do hope the fed takes a pause here.

The two bank failures may have accomplished what months more of rate hikes might not have managed. Banks pulled back on issuing credit. That's a deflationary move and it may be what really pulls it down.

 

[Gateman_Wen]

Risky and speculative capital investment doesn't raise inflation rates.

What idiot told you that lie?

 

[Mycroft]

We have a heavily Trump supporting Republican controlled House right no. So what are they proposing to do about inflation??

Do you think the House can reverse Biden's EO's?

 

[Gimmesometruth]

We have a heavily Trump supporting Republican controlled House right no. So what are they proposing to do about inflation?

Do you think the House can reverse Biden's EO's?

This conversation gets weirder and weirder.....Mycroft, .what EO's are driving inflation, and to what amount?

 

[Ishm]

Do you think the House can reverse Biden's EO's?

As above, What EO's are you referring to, and what is their impact on inflation?

 

[Gimmesometruth]

The fact is, inflation is here to stay no matter what the Fed does and inflation rates won't go back down to pre-Biden puke levels until Trump is back in office.

We are currently @ 6.0%, which is below where we were at in Oct 2021. We don't want to go back to below 2%, which is where we were in Feb of '21. The FED target is 2%, I think we will be near there by this summer.

 

[Metric Mouse]

Did the Fed achieve a soft landing? That would be pretty incredible if they did!

 

[Variant]

LOL Only Trump can fix it. Demagogues alway say that and like everything else they claim they are lying. The world is experiencing inflation and America is the first to get it under control. Trump lost BTW and losers never win.

Trump also had plenty of policies that contributed to the current issue and railed against the fed acting while he was in office.

AND, he's the guy who appointed Powell who hasn't had a clue except to raise the fed funds rate over and over.

I'd also love to hear what the Republicans intend to DO about inflation aside from complaining about it and then lapsing into sophistry and word salads.

 

[Variant]

Did the Fed achieve a soft landing? That would be pretty incredible if they did!

The Fed has achieved a messy and mixed reaction to reality. We'll see how their policies turn out over the next year or so.

 

[Mycroft]

This conversation gets weirder and weirder.....Mycroft, .what EO's are driving inflation, and to what amount?

The Biden puke EO's that attack the fossil fuel industry. They started day one.

 

[Variant]

The Biden puke EO's that attack the fossil fuel industry. They started day one.

They seem to be doing OK with their record profits and increased production since he has been in office.

 

[Kushinator]

They seem to be doing OK with their record profits and increased production since he has been in office.

Globalist elites!

 

[Chomsky]

The two bank failures may have accomplished what months more of rate hikes might not have managed. Banks pulled back on issuing credit. That's a deflationary move and it may be what really pulls it down.

Yes, that's my OP's theory.

 

[Metric Mouse]

The Fed has achieved a messy and mixed reaction to reality. We'll see how their policies turn out over the next year or so.

How has the economy suffered? GDP keeps increasing and employment continues to be at record highs... what are you upset about, that the Fed can control?

 

[Galactic Spin]

Our current inflation isn't caused by "less dollars chasing goods". It caused by increased cost of producing goods (energy)

That was so dumb, it made me have a minor stroke.

 

[Galactic Spin]

I'd also love to hear what the Republicans intend to DO about inflation aside from complaining about it and then lapsing into sophistry and word salads.

Absolutely nothing. They not only do not care, inflation is their friend. They love it. Millions of Americans suffering to give them a political advantage is like a fine cigar, to them.

 

[Variant]

How has the economy suffered? GDP keeps increasing and employment continues to be at record highs... what are you upset about, that the Fed can control?

Who says I am upset? I said their response has achieved something messy and mixed, that's quite possibly the best case scenario given the situation at hand, I'm not sure, that we'll have to wait and see how things go since these things take a while to sort out.

If I were to complain, I would say that the fed first waited too long to react to inflation and then raised rates at every opportunity for a year without ever really resting to see what effects their policy is having.

I would have preferred for them to start sooner, raise more slowly, and at some point pause to see if they need to keep going. The last time the fed did something like this was right before the housing market collapse, so fingers crossed.