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I am hearing this could hit the stock market very hard.
Hard to say. Large repeated increases have already been projected for this year so certainly some of that has already been baked into the terrible market performance so far this year.
The stock market won't be satisfied unless the Federal Reserve takes drastic action on inflation.
Investors now overwhelmingly predict the Fed will raise rates by a remarkable three-quarters of a percentage point at the conclusion of its policy meeting Wednesday. That hasn't happened since 1994, when Alan Greenspan ran the Fed.
..
"The big surprise now would be if they went back to 50 basis points," Dudley said.
The stock market won't be satisfied unless the Federal Reserve takes drastic action on inflation.
Investors now overwhelmingly predict the Fed will raise rates by a remarkable three-quarters of a percentage point at the conclusion of its policy meeting Wednesday. That hasn't happened since 1994, when Alan Greenspan ran the Fed.
..
"The big surprise now would be if they went back to 50 basis points," Dudley said.
If .75% is all it takes, than the American economy is built on a foundation of sand and BS. But that's what you get with democrats. Imagine the (mostly) liberal tears if someone like Volcker was around today to guide this fledgling ship???
If .75% is all it takes, than the American economy is built on a foundation of sand and BS. But that's what you get with democrats. Imagine the (mostly) liberal tears if someone like Volcker was around today to guide this fledgling ship???
My opinion here on this issue is not the most popular but the stock market was the most overvalued in history and is still overvalued and I would put Fair valuation around <9,000 on the NASDAQ and maybe 20 to 25 thousand in the Dow regardless with mortgage rates eclipsing six and a quarter percent and a long bond going up that should drive valuations below historical Norms which means considerable downside could come and that's fine and healthy.
I would expect some sort of rebound rally in this area though just due to chart patterns, high VIX, low bullishness. Nothing goes straight up or down.
I never thought I'd see mortgage rates at 6% in my lifetime I just wonder why its so much higher than long bond yields and the FED funds rate..
Last time they raised rates it actually helped the market because traders are worried about inflation. But the problem is it didn’t stop inflation. They should have been raising rates during Trump. Property values are starting to decline and will go lower once mortgages get more expensive. I don’t think we’re at the bottom of this market yet.
If .75% is all it takes, than the American economy is built on a foundation of sand and BS. But that's what you get with democrats. Imagine the (mostly) liberal tears if someone like Volcker was around today to guide this fledgling ship???
It's not, they just don't want to jack things all at once. Projects for increases this year typically range from 5-7 times.
We're going to be back to 7% mortgages or higher.
My first mortgage in 1995 was over 9%.
My second in 2000ish was 7.5% and then rapidly fell in the years after that.
This is going to *CRUSH* the housing market especially if combined with a recession.
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