Federal Reserve Chair Jerome Powell says
he may need to make 'aggressive' interest
rate hikes to combat record-breaking inflation
soaring 'too high'
Daily Mail (UK),
by
Morgan Phillips
Original Article
Posted By: Imright,
3/21/2022 7:36:19 PM
Federal Reserve Chair Jerome Powell said Monday that the central bank may need to get more 'aggressive' with interest rate hikes as inflation is 'much too high.' The Fed raised its benchmark interest rate by a quarter of a percent last week to between 0.25 and 0.5 percent. Officials planned on a series of 0.25 percent increases throughout the remainder of the year that would draw rates up to 2 percent by the end of 2022 and to 2.75 percent next year. 'The labor market is very strong, and inflation is much too high,' Powell said in remarks for the National Association of Business Economics.
Reply 1 - Posted by:
MindMadeUp 3/21/2022 7:44:16 PM (No. 1106201)
Does anyone else get the feeling out economy is being managed by a bunch of drunk chimpanzees?
33 people like this.
Reply 2 - Posted by:
NorthernDog 3/21/2022 7:56:38 PM (No. 1106206)
Interest rates generally need to be 4-5 points higher than the inflation rate in order to stop it. They need a full 10-point increase at this point, or inflation will continue to roar.
9 people like this.
Reply 3 - Posted by:
JHHolliday 3/21/2022 8:05:35 PM (No. 1106211)
No cow flop, Sherlock. It should have been done years ago. It got to 18% when Carter bungled through 4 years of economic pain that RR inherited bur Reagan held the course and brought us back to prosperity. Of course, interest rates like that will mean the US won’t be able to service our debt and will even wake up the dumb leftist morons when a real recession hits. Probably a genuine depression. I can remember some close friends celebrating when they got a mortgage rate of 12% on their new home. The coming disaster doesn’t seem to bother our feckless pols. They will be ok while they kick the can down the road. Keep an eye on the interest rates and be prepared to move your assets to CDs. I know that’s loaning money to a bankrupt government but it’s probably better than keeping it in the market where you could lose all you have worked for in your lifetime.
12 people like this.
Reply 4 - Posted by:
Ribicon 3/21/2022 8:12:38 PM (No. 1106213)
We should have negative interest rates like in Japan. That way fedgov can keep right on spending to enrich Congress, and the Fed will just keep printing money to cover it. Picture the members of our wonderful banker class salivating at the prospect of charging people for keeping money on deposit at their banks, or bearing high account fees and minimum balances so people can have enough in the account to cover their monthly bills.
5 people like this.
Reply 5 - Posted by:
oldretiredDAT 3/21/2022 8:47:58 PM (No. 1106245)
We should never have bailed out any of the banks back in 2008 or after. Let them sink, let the economy reset, and then start a slow recovery. But NOOOOOOOOOOOOOO, We have to save people from any pain or problems by spending more money on things like "shovel ready projects". And it never stops. Raise the rate to 15%, let the bottom fall and then see what we can do. The rest of the world will fall too, but really, AMERICA FIRST!!!
7 people like this.
Reply 6 - Posted by:
stablemoney 3/21/2022 8:55:11 PM (No. 1106250)
The government, having screwed up 1000x over, and for decades, now intends to shave 10% off everyone's assets this year, and another 10% next year--and there is nowhere to escape, as they are taking 10% off of cash as well.
5 people like this.
Reply 7 - Posted by:
RussZilla 3/21/2022 9:17:14 PM (No. 1106266)
Useless imbecile. Like the whole Biden crew. People who have been promoted beyond their skill sets. A clown car, a ship of fools. I could go on.
7 people like this.
Reply 8 - Posted by:
Stencil 3/21/2022 9:44:19 PM (No. 1106279)
Following on the third post, my first and most satisfying vote for a President was for Ronald Reagan in '80 but, I'll have to remind the poster, that it was Jimmy Carter who hired Paul Volcker because of his thinking on battling inflation. Carter is quoted as acknowledging there was going to be pain but thought he would be enjoying the fruits as the reelected President.
Richard Nixon may have been a maven in some arena but economics was not his strong suit. Exhibit A: price controls. Exhibit B: China.
8 people like this.
Reply 9 - Posted by:
billsv 3/21/2022 10:27:37 PM (No. 1106301)
If he had not printed all the money we would not have had inflation, the deterioration of the dollar an a recession the come. He created the problem and now has to clean it up. What a loser!
5 people like this.
Reply 10 - Posted by:
Pearson365 3/21/2022 10:31:36 PM (No. 1106303)
“ The rate hike last week was the first since 2018, as rates have been kept at a near-zero level since the onset of the coronavirus pandemic as Powell favored maximum employment with a higher tolerance for inflation.”
But the pandemic began in March 2020, not 2018, so the Fed using the virus for being asleep for 4 years. Other than buying $9 to $11 trillion in Treasury and mortgage backed securities debt, the Fed failed to slowly raise rates when we had full employment due to a pro growth, pro business president. Now, with an anti growth, anti business Biden regime, the Fed is finally raising rate in order to reduce the inflation Biden’s bizarre policies have produced. What a government.
8 people like this.
Reply 11 - Posted by:
Timber Queen 3/22/2022 12:14:57 AM (No. 1106333)
#3 - Also remember, in response to the rapid inflation the credit card companies started screaming about state's usury laws that capped credit rates at 12%. Those laws were scrapped and cc interest rates went into the stratosphere. Yet, even when the Fed rate was down to below the decimal point cc rates never came down. Bastids.
9 people like this.
Reply 12 - Posted by:
DVC 3/22/2022 12:55:50 AM (No. 1106348)
Count on interest rates increasing.
6 people like this.
Reply 13 - Posted by:
GoodDeal 3/22/2022 2:02:34 AM (No. 1106359)
How about making aggressive cuts in government borrowing and spending instead.
11 people like this.
Reply 14 - Posted by:
F15 Gork 3/22/2022 7:40:44 AM (No. 1106451)
Yo dummy! Quit printing money and pretending it’s real. The upcoming recession/depression is gonna be a doozy.
5 people like this.
Reply 15 - Posted by:
udanja99 3/22/2022 8:38:30 AM (No. 1106479)
Quit printing money and start pumping American oil. Problem solved.
10 people like this.
Reply 16 - Posted by:
Old Army Vet 3/22/2022 9:06:53 AM (No. 1106494)
Thanks Brandon, great job.
2 people like this.
Reply 17 - Posted by:
kennedylaw 3/22/2022 9:41:55 AM (No. 1106536)
In 1980, the Fed had to raise the federal funds rate all the way to 20.0% to bring Jimmy Carter's inflation under control. The Fed just raised the federal funds rate from 0.25% to 0.5%. If the Fed raised interest rates high enough to actually stop inflation, it would crash the U.S. economy, which now depends on historically low interest rates just to stay afloat. So instead, the best case scenario is several years of stagflation followed by a recession. The worst case scenario is Venezuela.
1 person likes this.
Reply 18 - Posted by:
red1066 3/22/2022 10:09:23 AM (No. 1106559)
Since they are over a year late in raising interest rates, an aggressive rate hike at this point is too late. Inflation is here to stay for quite a while. Stagflation is next on the menu.
1 person likes this.
Reply 19 - Posted by:
MickTurn 3/22/2022 11:22:51 AM (No. 1106668)
Why not tell the Dumb Arse living in the White House to stop trashing the economy? Fix the REAL problem, band aids won't help on a gaping wound!
1 person likes this.
Reply 20 - Posted by:
DVC 3/22/2022 1:08:20 PM (No. 1106800)
The cost of the interest on the national debt will grow to equal most or all of annual tax revenues if this rate increases to 1980s levels.
What that really portends is difficult to estimate. But nothing good.
2 people like this.
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