Fed raises rates by another three-quarters of a percentage point

[gdale6]

• The Federal Reserve raised benchmark interest rates by another three-quarters of a percentage point and indicated it will keep hiking well above the current level.
• The central bank has been looking to bring down inflation, which is running near its highest levels since the early 1980s.
• Fed officials signaled the intention of continuing to hike until the funds level hits a “terminal rate,” or end point, of 4.6% in 2023. That implies a quarter-point rate rise next year but no decreases.

https://www.cnbc.com/2022/09/21/fed-rate-hike-september-2022-.html

Tick tock the Fed is going to cause the middle and poor classes pain, credit card defaults will be rising in the near future, home buying is already coming to a screeching halt... I bought a home when FHA was above 7% and I have seen the effects of moving interest rates higher... Now might be the time to lock in some credit card rate reductions if you have the Fico for it.

[Anonymous]

@gdale6

This is a little like the old adage "guns or butter" as we are outstripping the supply chain, have driven housing prices so high now that people can't afford (irrelevant of the interest rate), rent is running on the expensive side in many metro areas, so something has to be done to slow our lifestyles some and catch a breath.

My suspicions are we let it fly as the pandemic subsided and went crazy spending. Some slowing is required. You mentioned certain elements of our community can't afford and that certainly includes those on fixed incomes.

[Anonymalous]

The rise in interest rates may hurt the poor and those on fixed incomes, but the inflation hurts them even more. There's no good solution, except not to print all that money in the first place.

[M_Smart007]

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@Anonymalous wrote:

The rise in interest rates may hurt the poor and those on fixed incomes, but the inflation hurts them even more. There's no good solution, except not to print all that money in the first place.

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@Anonymalous, Spot on!  ^^^^

Brought to you by easy monetary printing press policies.

[crystal626]

I am sure glad I don't have any debt. My savings account also has been seeing nice increases every month after being flat for years (APR was 0% before these hikes started). 

[Anonymalous]

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@crystal626 wrote:

I am sure glad I don't have any debt. My savings account also has been seeing nice increases every month after being flat for years (APR was 0% before these hikes started). 

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Inflation was also around 2%, meaning with 0% APR money in your savings account lost about 2% in real value each year. With inflation north of 8% and APRs around 2%, we're losing about 6% a year, or about three times as much.

[gdale6]

An interesting argument I ran across this morning

https://www.cnbc.com/2022/09/26/whartons-siegel-says-jerome-powell-owes-the-american-people-an-apolo...

[Anonymous]

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@gdale6 wrote:

An interesting argument I ran across this morning

https://www.cnbc.com/2022/09/26/whartons-siegel-says-jerome-powell-owes-the-american-people-an-apolo...

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Interesting "counterpoint" and tends to give the reader "pause" ... ?  

[M_Smart007]

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@Anonymous wrote:

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@gdale6 wrote:

An interesting argument I ran across this morning

https://www.cnbc.com/2022/09/26/whartons-siegel-says-jerome-powell-owes-the-american-people-an-apology-for-poor-fed-policy.html

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Interesting "counterpoint" and tends to give the reader "pause" ... ?  

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@Anonymous, "pause" or "paws" .. heck I don't want an apology for the millions of people this has hurt,

I want retribution!!!

Their lousy monetary policy, has hurt many elderly and already struggling Americans.

“For evil men to accomplish their purpose, it is only necessary that good men do nothing,”