Come September: Federal Reserve Interest Rate Hike

[FrankMiller]

Originally Posted by Hoonose

I just don't see how raising interest rates will help employment and wages, which I agree are our major problems.

It doesn't help, that's why liberals are pushing for retaining low interest rates for now.

Originally Posted by jotucker99

^^ Perfect example of how the Fed creates a Market Bubble. This guy has now become addicted to low borrowing rates and inflated stock prices, so when then Fed goes to increase rates it will be investors like this guy who will be threatening anarchy.

Do you also think the government should step in and artificially increase oil prices to prevent people from being "addicted" to cheap gasoline, or just interest rates?

[mathjak107]

the world has low rates because it needs low rates . low rates are a result of not the cause of , it isn't just about the fed . most of the world is ready to slip in to a recession . don't blame the fed blame the sluggish economy .

[LeavingMA]

Originally Posted by jotucker99

You Stock Market folks are something else. You want to continue to screw everybody else over with these low rates and Forever QE, just to keep the air in the bubble of the Stock Market so you can eventually get to what? DOW 25,000?

This Fed must have been paid off by Wallstreet or something. The rates should have BEEN increased back to at least some type of balanced level or "fair" level. Why Savers and CD guys have to get utterly SCREWED, while you guys sit on an inflated Stock Bubble, is insane to me.

You obviously didn't read my prior posts as I was simply responding to a question, and agree that holding rates low is not the way to go. Insanity - the definition of doing things over and over again and expecting different results. We have had rates low for about 6 years now and the Fed continues to say one thing and do another. At first they said they would lower rates when unemployment got below 6% (number might off slightly). They are talking about an increase in the rate in September, but already there is talk that won't happen. I've basically heard about a rate increase for the last 3 years and nothing.

First we have to realize the Federal Reserve was created by bankers who essentially wanted the ability to take more risk without the risk. Banks didn't want to have to have large reserves in able to lend out money, but they also wanted to be safe from any downside. Just think about what happened in 2008-2009 where the banks got bailed out (they are bigger now then before), and the middle class too the hit. Many people lost their homes and the banks got bailed out for many of their loses. Many small to medium sized banks went under, but the big banks got to hang around despite all the risk they took.

I will add there is another reason many people believe the Fed is keeping interest rates low, which has to do with our national debt. Our debt is tied to the interest rates. In no way do I think the Fed is looking out for the middle class. They definitely aren't looking out for retirees or seniors as they can't get any return without putting their money into riskier funds.

I really don't think the Fed knows what to do and they basically put themselves behind a wall and a hard place. If they start raising rates, the asset bubbles in stocks and housing start to pop, and the whole house of cards they recreated starts to come crashing down. They created a bunch of heroin addicts who need their fix. If interest rates were driven by the free market, I believe interest rates would be a lot higher.

[mathjak107]

bond rates are driven by the worlds investors and they have no problem with where rates are .

in fact the inverted yield curve we had right before the recession was because the worlds bond investors saw things different than poppa fed did so they bid rates lower while the fed increased short term rates .

[LVguy]

so for savings account and CDs how soon will your local banks raise the interest rate?