Fed approves 75 BP rate increase

NoMoreE46 · ‎11-02-2022

https://www.cnbc.com/2022/11/02/fed-hikes-by-another-three-quarters-of-a-point-taking-rates-to-the-h...

CreditCuriosity · ‎11-02-2022

Stinks, but needed and more pain to come. Likely the last .75 one, but more smaller ones to come.

Anonymalous · ‎11-03-2022

This is wrecking economies around the globe. Emerging markets usually have to float bonds denominated in U.S. dollars, because international investors don't trust the local currencies. And with interest rates on the dollar rising, that means the cost of servicing their debt is skyrocking, capital inflows are being cut off, and to add insult to injury imports cost more.

This is entirely a self-inflicted wound, because governments around the world acted like someone who got a credit card with a 0% APR SUB, charged far more than they can afford, and then acted shocked when the intro period ended and the rates jumped back to normal. But it's going to be painful.

Revelate · ‎11-04-2022

@CreditCuriosity wrote:
Stinks, but needed and more pain to come. Likely the last .75 one, but more smaller ones to come.

We'll see, that was a pretty darned good jobs report for everything but inflation easing today. Lot more datapoints to come between now and December too, I'm not so sure we're done with the .75 ones personally.

Admittedly more and more companies announcing hiring freezes or layoffs, sooner or later that's got to cool the economy.

QuarterB35 · ‎12-05-2022

@NoMoreE46 wrote:
https://www.cnbc.com/2022/11/02/fed-hikes-by-another-three-quarters-of-a-point-taking-rates-to-the-h...

Will this have an effect on credit card rates?

Revelate · ‎12-05-2022

@QuarterB35 wrote:
@NoMoreE46 wrote:
https://www.cnbc.com/2022/11/02/fed-hikes-by-another-three-quarters-of-a-point-taking-rates-to-the-h...
Will this have an effect on credit card rates?

This was from the last FOMC.

Short answer is probably at some level for some issuers. CC APRs have gone up more quickly than the Fed though, they aren't tied to it, but in general higher Fed rate, higher APRs for basically everything in some form or fashion.

QuarterB35 · ‎01-12-2023

@Revelate wrote:
@QuarterB35 wrote:
@NoMoreE46 wrote:
https://www.cnbc.com/2022/11/02/fed-hikes-by-another-three-quarters-of-a-point-taking-rates-to-the-h...
Will this have an effect on credit card rates?
This was from the last FOMC.

Short answer is probably at some level for some issuers. CC APRs have gone up more quickly than the Fed though, they aren't tied to it, but in general higher Fed rate, higher APRs for basically everything in some form or fashion.

Thanks! Very helpful