hi this is trip retired guy usa.com I blog about retirement and personal
finance issues well today Wednesday the Federal Reserve is widely expected to to
raise interest rates again this will be the about the eighth or ninth rate
increase since they started this at the end of 2015 that raise them a quarter
point at the time and this will be the third rate increase for this year and
I'm certain enough about it that I'm boldly going out there and predicting it
like everybody else is - so it doesn't require you to be very bold actually we
do know for sure that the Sabres will continue to get the short end of the
stick whereas the war on Sabres began with where the Federal Reserve keeping
interest rates at basically zero for several years banks are now taking up
the battle against savers your friend and local bank is there I think they're
the average CD rates like a year or so is maybe like a half a percentage point
whereas the the new Federal Reserve rate will be something like there'll be two
to two and a quarter percent so the banks are taking it or taking you taking
you for a ride now the Federal Reserve rule like I said will raise it by that
quarter of a point and this will be the highest rate since the year 2008 at the
beginning of the the so-called Great Recession which lasted for a couple of
quarters supposedly officially for a couple of quarters so we're coming off
the second quarter of this year without with all really good profits and a very
high rate of return something we're like a GDP of something like four percent we
all heard about the labor market and employment rate is so low depending on
where you are or what group you're in has been this the lowest has been in
like maybe 20 30 40 years or more depending on what measure you're looking
at and there's not they don't expect the
market to make a huge reaction today whenever there is interest rates since
normally when interest rates go up stocks will tend to go down at least in
the long run that's true they don't expect much reaction on that today and
they do consider they'll probably be to more rate increases while one more rate
increase this year probably in December
that would talk about when they have the federal reserve briefing at about two
o'clock this afternoon that they'll talk about a common comma
dative policy for years we've been hearing that the monetary policy remains
accommodative which means they'll keep rates low to bail out as many people as
I can except for the people who were saving diligently all this time you got
the short end of the stick so they'll talk about it that at the two o'clock
press conference they'll discuss the accommodative language brother it's
going to stay in there and if they make a so they take that out then then
probably though it'll be a signal we're getting closer to the two I think a
suitor the neutral rates when they'll start starting to consider slowing down
or even stopping the the rate increases at some point in the next year or two
they probably will they're probably be very very double about inflation don't
expect to see much inflation in spite of the low unemployment rates and the and
the economy increasing GDP increasing like it has been I probably say there's
minimal price pressures so I'm predicting predicting a lot here and I
could be wrong about some of this but laughter this is probably true and we'll
see what they say at the press conference especially with what they
call the dot plot which is to tell Reserve's projection for a future pretty
future interest rate increases and that's pretty much all today and
have you watched prepare trip goodbye
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