After Only Raising Rates Once During Obama Years, The Fed Is Promising Constant Rate Hikes During The Trump Era

[rangerrebew]

After Only Raising Rates Once During Obama Years, The Fed Is Promising Constant Rate Hikes During The Trump Era
December 16, 2016 | Michael Snyder | The Economic Collapse | 224 views
 

Now that Donald Trump has won the election, the Federal Reserve has decided now would be a great time to start raising interest rates and slowing down the economy.

Over the past several decades, the U.S. economy has always slowed down whenever interest rates have been raised significantly, and on Wednesday the Federal Open Market Committee unanimously voted to raise rates by a quarter point.  Stocks immediately started falling, and by the end of the session it was their worst day since October 11th.

The funny thing is that the Federal Reserve could have been raising rates all throughout 2016, but they held off because they didn’t want to hurt Hillary Clinton’s chances of winning the election.

http://www.thedailysheeple.com/after-only-raising-rates-once-during-obama-years-the-fed-is-promising-constant-rate-hikes-during-the-trump-era_122016

[skeeter]

Time to clean house at the fed, too.

There is an opportunity to clear out the leftwing advocates currently infesting the federal bureaucracy, who haven't and  cannot possibly do their jobs properly as they see everything through an ideological lens.

If Trump doesn't do this then he'll have only himself to blame for the inevitable results.

[IsailedawayfromFR]

Yellen is a political hack that protected Obama's prolific spending and debt increases.

She knows her days are numbered, as her term expires January, 2018.

[Oceander]

The Fed has become thoroughly politicized.

[mirraflake]

The Daily sheeple must have slept through Econ101.  This raising of the rates was looked forward to and nearly all economist today welcome it and Wall Street loves it. It will tame inflation, actually create more lending and give savers more money among many other points.

Yellen raising the rates was the best thing to help Trump in 2017.

Stagnat or weakening economies lower rates.



@Oceander
@skeeter
@rangerrebew
@IsailedawayfromFR

[Oceander]

The Daily sheeple must have slept through Econ101.  This raising of the rates was looked forward to and nearly all economist today welcome it and Wall Street loves it. It will tame inflation, actually create more lending and give savers more money among many other points.

Yellen raising the rates was the best thing to help Trump in 2017.

Stagnat or weakening economies lower rates.



@Oceander
@skeeter
@rangerrebew
@IsailedawayfromFR

We shall see.  But if you want to persuade, don't be such a pr!ck

And your flaw is blithely assuming that what's good for Wall Street is necessarily good for Main Street.  That is a very flawed assumption. 

[mirraflake]

We shall see.  But if you want to persuade, don't be such a pr!ck
.

Not sure how I was being a pr*ck. When I was referring to the daily sheeple was not you fellow posters but the web link-named Thedailysheeple.

@Oceander

[Sanguine]

So predictable.

[IsailedawayfromFR]

The Daily sheeple must have slept through Econ101.  This raising of the rates was looked forward to and nearly all economist today welcome it and Wall Street loves it. It will tame inflation, actually create more lending and give savers more money among many other points.

Yellen raising the rates was the best thing to help Trump in 2017.

Stagnat or weakening economies lower rates.



@Oceander
@skeeter
@rangerrebew
@IsailedawayfromFR

The points you are missing out on are

1. the timing of these - not a coincidence at all at the end of Obama's term is it?

2. The staggering amount of interest on federal debt that each rate increase will result in.
Any matured Treasury securities will be at higher interest rates and yield correspondingly higher interest payments.  May be good for a new bond holder but certainly not for existing longer term bondholders or for the taxpayer which pays that increased interest.

3. If this rise in rates was so warranted and imminent like you proclaim, why would a patriotic President not turn most of our shorter-term debt into debt with longer terms to keep this debt level down during the rise of rates?

These are political actions, not necessarily just economic ones like you refer to.

First class I ever took in college was Economics, and it was a three hour course, not a one hour course you allude to.

[Hoodat]

Yellen is a political hack that protected made possible Obama's prolific spending and debt increases.

There, fixed it.

[Frank Cannon]

Yellen is a political hack that protected Obama's prolific spending and debt increases.

She knows her days are numbered, as her term expires January, 2018.

Every Fed Head has been a complete and total shitshow since Volker. Mr Yellen is a loser.

[geronl]

2. The staggering amount of interest on federal debt that each rate increase will result in.

Trump says we can handle trillions and trillions in new debt, no big deal at all. lol

[truth_seeker]

The likelihood of rate increases has been previewed for the last year or longer, irrespective of who won the election.

This increase is not to help or to hurt trump. They look at growth, unemployment, wage increases, etc.

[montanajoe]

The likelihood of rate increases has been previewed for the last year or longer, irrespective of who won the election.

This increase is not to help or to hurt trump. They look at growth, unemployment, wage increases, etc.

Yep..raising rates means the expectation is that the economy truly is getting better. The nation has been on the verge of deflation for the past 8 years, which is far worse than raising rates by 1% over the next year..

[truth_seeker]

Yep..raising rates means the expectation is that the economy truly is getting better. The nation has been on the verge of deflation for the past 8 years, which is far worse than raising rates by 1% over the next year..

I attended a housing industry seminar BEFORE the election. The well regarded speaker predicted interest rate increases, regardless of who won the election.

[IsailedawayfromFR]

I attended a housing industry seminar BEFORE the election. The well regarded speaker predicted interest rate increases, regardless of who won the election.

And a survey of economists said the same thing before the election as well.  In 2009. http://www.wsj.com/articles/SB125797275784744057

The reason they are being raised now as Obama does not need the protection.  Shoulda been done a long time ago.

[Sanguine]

And a survey of economists said the same thing before the election as well.  In 2009. http://www.wsj.com/articles/SB125797275784744057

The reason they are being raised now as Obama does not need the protection.  Shoulda been done a long time ago.

Exactly.  The news isn't that they are now being raised, but that they haven't been for most of 0's presidency.

[Night Hides Not]

The Daily sheeple must have slept through Econ101.  This raising of the rates was looked forward to and nearly all economist today welcome it and Wall Street loves it. It will tame inflation, actually create more lending and give savers more money among many other points.

Yellen raising the rates was the best thing to help Trump in 2017.

Stagnat or weakening economies lower rates.



@Oceander
@skeeter
@rangerrebew
@IsailedawayfromFR

Considering that roughly 2/3 of HS grads go on to college, at least 1/3 of HS grads will never take a formal class in Econ 101. How many of the 2/3 will actually take the class and not sleep through it is a different matter.

Raising those interest rates may help retirees' interest income, but it will have a deleterious effect on budget deficits, though I don't think anyone inside the Beltway will give it a second thought.

[Weird Tolkienish Figure]

THe fed will raise rates during the Trump presidency so the US doesn't plunge into a depression.


Trumpers should be happy about that.

[skeeter]

THe fed will raise rates during the Trump presidency so the US doesn't plunge into a depression.


Trumpers should be happy about that.

If we plunged into a depression it will be in large part because this fed apparently acted politically these past 8 years instead of doing what they are primarily charged with doing.

BTW can anyone offer an easy to understand reason why inflation has stayed relatively low, what with the QEs and super low interest rates? Low general demand? Problems with liquidity?

[Weird Tolkienish Figure]

If we plunged into a depression it will be in large part because this fed apparently acted politically these past 8 years instead of doing what they are primarily charged with doing.

BTW can anyone offer an easy to understand reason why inflation has stayed relatively low, what with the QEs and super low interest rates? Low general demand? Problems with liquidity?

Because China is willing to gobble up our dollars to keep their exports cooking.

[geronl]

Why did I know before clicking that Trumpers would take a rate increase as a personal sleight against their new God