Current Events > Federal Reserve raises interest rates

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Scorsese2002 03/16/22 2:13:23 PM #1:	https://twitter.com/cnbcnow/status/1504155576317751299?s=21 The Federal Reserve on Wednesday approved its first interest rate increase in more than three years, an incremental salvo to address spiraling inflation without torpedoing economic growth. After keeping its benchmark interest rate anchored near zero since the beginning of the Covid pandemic, the policymaking Federal Open Market Committee said it will raise rates by a quarter percentage point, or 25 basis points. That will bring the rate now into a range of 0.25%-0.5%. The move will correspond with a hike in the prime rate and immediately send financing costs higher for many forms of consumer borrowing and credit. Along with the rate hikes, the committee also penciled in rate hikes at each of the six remaining meetings this year, pointing to a consensus funds rate of 1.9% by years end. The committee sees three more hikes in 2023 then none the following year. The rate hike was approved with only one dissent. St. Louis Fed President James Bullard wanted a 50-basis-point increase. The committee last raised rates in December 2018, then had to backtrack the following July and begin cutting. In its post-meeting statement, the FOMC said it also anticipates that ongoing increases in the target range will be appropriate. Addressing the Feds nearly $9 trillion balance sheet, comprised mainly of Treasurys and mortgage-backed securities it has purchased over the years, the statement said: In addition, the Committee expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting. The indication for about 175 basis points in rate increases this year was a close call: The dot plot of individual members projections showed eight members expecting more than the seven hikes, while 10 thought that would be sufficient. Officials also adjusted their economic outlook on multiple fronts, seeing much higher inflation than they expected in December and considerably slower GDP growth. Committee members bumped up their inflation estimates, expecting the personal consumption expenditures price index excluding food and energy to reflect 4.1% growth this year, compared to the 2.7% projection in December 2021. On GDP, Decembers 4% was sliced to 2.8%, as the committee particularly noted the potential implications of the Ukraine war. The invasion of Ukraine by Russia is causing tremendous human and economic hardship, the statement said. The implications for the U.S. economy are highly uncertain, but in the near term the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity. --- https://www.twitch.tv/dtake86 <cite>Scorsese2002 posted [p:963498002] in Federal Re... [t:79945467]...</cite> <quote>https://twitter.com/cnbcnow/status/1504155576317751299?s=21 The Federal Reserve on Wednesday approved its first interest rate increase in more than three years, an incremental salvo to address spiraling inflation without torpedoing economic growth. After keeping its benchmark interest rate anchored near zero since the beginning of the Covid pandemic, the policymaking Federal Open Market Committee said it will raise rates by a quarter percentage point, or 25 basis points. That will bring the rate now into a range of 0.25%-0.5%. The move will correspond with a hike in the prime rate and immediately send financing costs higher for many forms of consumer borrowing and credit. Along with the rate hikes, the committee also penciled in rate hikes at each of the six remaining meetings this year, pointing to a consensus funds rate of 1.9% by years end. The committee sees three more hikes in 2023 then none the following year. The rate hike was approved with only one dissent. St. Louis Fed President James Bullard wanted a 50-basis-point increase. The committee last raised rates in December 2018, then had to backtrack the following July and begin cutting. In its post-meeting statement, the FOMC said it also anticipates that ongoing increases in the target range will be appropriate. Addressing the Feds nearly $9 trillion balance sheet, comprised mainly of Treasurys and mortgage-backed securities it has purchased over the years, the statement said: In addition, the Committee expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting. The indication for about 175 basis points in rate increases this year was a close call: The dot plot of individual members projections showed eight members expecting more than the seven hikes, while 10 thought that would be sufficient. Officials also adjusted their economic outlook on multiple fronts, seeing much higher inflation than they expected in December and considerably slower GDP growth. Committee members bumped up their inflation estimates, expecting the personal consumption expenditures price index excluding food and energy to reflect 4.1% growth this year, compared to the 2.7% projection in December 2021. On GDP, Decembers 4% was sliced to 2.8%, as the committee particularly noted the potential implications of the Ukraine war. The invasion of Ukraine by Russia is causing tremendous human and economic hardship, the statement said. The implications for the U.S. economy are highly uncertain, but in the near term the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity. </quote> ... Copied to Clipboard!
PatrickMahomes 03/16/22 2:18:03 PM #2:	need someone to explain this to me like i'm 5 --- https://i.imgur.com/cEQy3f4.png / https://i.imgur.com/gWKaLHC.png https://i.imgur.com/u6JR7qX.jpeg <cite>PatrickMahomes posted [p:963498141] in Federal Re... [t:79945467]...</cite> <quote>need someone to explain this to me like i'm 5 </quote> ... Copied to Clipboard!
Irony 03/16/22 2:18:48 PM #3:	PatrickMahomes posted... need someone to explain this to me like i'm 5 You pay more money --- I am Mogar, God of Irony and The Devourer of Topics. <cite>Irony posted [p:963498154] in Federal Re... [t:79945467]...</cite> <quote>PatrickMahomes posted... </cite> <quote>need someone to explain this to me like i'm 5</quote>You pay more money </quote> ... Copied to Clipboard!
MC_BatCommander 03/16/22 2:21:43 PM #4:	PatrickMahomes posted... need someone to explain this to me like i'm 5 The Fed raises interest rates in an effort to combat inflation, is the very basic jist of it --- The Legend is True! <cite>MC_BatCommander posted [p:963498233] in Federal Re... [t:79945467]...</cite> <quote>PatrickMahomes posted... </cite> <quote>need someone to explain this to me like i'm 5</quote> The Fed raises interest rates in an effort to combat inflation, is the very basic jist of it </quote> ... Copied to Clipboard!
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Current Events > Federal Reserve raises interest rates