Author Topic: Yellen says interest rates may need to increase  (Read 990 times)

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Offline mystery-ak

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Yellen says interest rates may need to increase
« on: May 04, 2021, 05:25:02 pm »
Yellen says interest rates may need to increase
By Niv Elis - 05/04/21 12:58 PM EDT


Treasury Secretary Janet Yellen on Tuesday said that interest rates may need to increase to keep the recovering economy from going into overdrive on the heels of significant government spending.

“It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat, even though the additional spending is relatively small relative to the size of the economy,” she said in response to a question on a panel hosted by The Atlantic about whether the economy could absorb the large dose of spending President Biden was proposing.

"Even though the additional spending is relatively small relative to the size of the economy, it could cause some very modest increases in interest rates,” she added.

Critics of the major spending push have warned that it will push up prices, as government funds boost demand faster than production of supply can keep up.

Were inflation to take hold in a serious way, it would erode purchasing power, particularly for low earners, and could require interest rate hikes to get inflation back in line. An increase in interest rates could slow or even reverse the economic recovery.

Federal Reserve Chairman Jerome Powell has said that the recent uptick in prices is likely to be temporary and that he doesn't expect interest rates to rise this year, but that the central bank is closely monitoring inflation.

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https://thehill.com/policy/finance/551720-yellen-says-interest-rates-may-need-to-increase
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Online catfish1957

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Re: Yellen says interest rates may need to increase
« Reply #1 on: May 04, 2021, 07:15:37 pm »
A 10 cent Catfish one sentence interpretation of this socialist double-speak?

Out of control government spending is going to initiate hyper inflation, and interest rates by design are going to be pulled by that vacuum.
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Offline IsailedawayfromFR

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Re: Yellen says interest rates may need to increase
« Reply #2 on: May 05, 2021, 07:42:44 pm »
A 10 cent Catfish one sentence interpretation of this socialist double-speak?

Out of control government spending is going to initiate hyper inflation, and interest rates by design are going to be pulled by that vacuum.
Yep, Yellen seems to think she has some type of control over interest rates.  She does not.

They will rise regardless of whatever she would try to do to keep them down.

When almost 40% of the money spent in this country comes from the government, the results are utterly predictable.

No wonder Biden recently went to Georgia to meet Carter, who holds the current record of the worst economy and inflation of our lifetime.

Biden want to replace that legacy with one of his own.
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Online DefiantMassRINO

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Re: Yellen says interest rates may need to increase
« Reply #3 on: May 05, 2021, 07:54:57 pm »
Other possibility ...

The Government's need to borrow at low rates to fund runaway deficits will lead Federal Reserve and Treasury to conspire to keep rates lower than they'd naturally be.

Rising rates will crush the American economy whose foundation has been built upon private, corporate, and public debt.

The only way to increase rates and have a vibrant economy is to increase efficiencies and possibly increase (the efficiency of) the velocity of money through the economy.  This would be a way of increasing GDP with a smaller money supply.

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Offline IsailedawayfromFR

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Re: Yellen says interest rates may need to increase
« Reply #4 on: May 05, 2021, 08:21:12 pm »
Other possibility ...

The Government's need to borrow at low rates to fund runaway deficits will lead Federal Reserve and Treasury to conspire to keep rates lower than they'd naturally be.

Rising rates will crush the American economy whose foundation has been built upon private, corporate, and public debt.

The only way to increase rates and have a vibrant economy is to increase efficiencies and possibly increase (the efficiency of) the velocity of money through the economy.  This would be a way of increasing GDP with a smaller money supply.


My counter to your argument is exactly 180 degree different.

The despots leading this country are purposely destroying the economy so it can claim more government is needed to prop it up ala FDR's New Deal.

They will ALWAYS blame Trump and the GOP for a poor economy as being 'inherited'.  There is no patriotism among these people and they could care less if businesses fail or people are driven into poverty, as long as they remain in power.

Rahm Emanuel "Never let a crisis go to waste'.
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Online DefiantMassRINO

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Re: Yellen says interest rates may need to increase
« Reply #5 on: May 05, 2021, 10:07:29 pm »
The intentional instantiation of crisis to justify further Government intervention and control of the economy is always a possibility - use Government to create a crisis for which more, bigger Government is the solution.
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Re: Yellen says interest rates may need to increase
« Reply #6 on: May 05, 2021, 10:56:29 pm »
The intentional instantiation of crisis to justify further Government intervention and control of the economy is always a possibility - use Government to create a crisis for which more, bigger Government is the solution.

I am convinced the government is hiding data on the correct inflationary numbers  right now.  Everyone of us has anecdotal evidence of pricing skyrocketing on most everything.

Right now the dynmamics are so different than they were in the 1970's.  The left has complete control of the media narrative, and how the economy is being handled.   But you are right in the fact that a crisis with the right complicit parties (same big tech and media) will make our left leaning government use said crisis to enact sociialist reforms.  Even under a war powers like Excecutive Orders rampage.

And right now, there is nothing standing in their way.
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Re: Yellen says interest rates may need to increase
« Reply #7 on: May 05, 2021, 11:04:42 pm »
I am convinced the government is hiding data on the correct inflationary numbers  right now.  Everyone of us has anecdotal evidence of pricing skyrocketing on most everything.

Right now the dynmamics are so different than they were in the 1970's.  The left has complete control of the media narrative, and how the economy is being handled.   But you are right in the fact that a crisis with the right complicit parties (same big tech and media) will make our left leaning government use said crisis to enact sociialist reforms.  Even under a war powers like Excecutive Orders rampage.

And right now, there is nothing standing in their way.

 :yowsa: Absolutely they are doing that!
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Offline IsailedawayfromFR

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Re: Yellen says interest rates may need to increase
« Reply #8 on: May 06, 2021, 02:04:38 am »
I am convinced the government is hiding data on the correct inflationary numbers  right now.  Everyone of us has anecdotal evidence of pricing skyrocketing on most everything.

Right now the dynmamics are so different than they were in the 1970's.  The left has complete control of the media narrative, and how the economy is being handled.   But you are right in the fact that a crisis with the right complicit parties (same big tech and media) will make our left leaning government use said crisis to enact sociialist reforms.  Even under a war powers like Excecutive Orders rampage.

And right now, there is nothing standing in their way.
Yep.  I know that food prices will begin soaring soon as the cattle feed I purchased last week was a full 30% higher than last month, and the fertilizer for the hayfield was over 40% higher.
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Offline sneakypete

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Re: Yellen says interest rates may need to increase
« Reply #9 on: May 06, 2021, 03:44:29 am »
Jist ain't no slipping NUTTIN past that boy,is there?

Or were we supposed to think the goobermint would just give away all that BORROWED money and not have to pay any interest on it?

I know they think we are all stoopid,but there has to be a limit to stupidity.
« Last Edit: May 06, 2021, 03:46:08 am by sneakypete »
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