Drudge Retort: The Other Side of the News
Wednesday, September 18, 2019

Borrowing rates skyrocketed on Tuesday in a corner of the markets the public rarely notices but that is critical to the functioning of the global financial system. The spike in overnight borrowing rates forced the New York Federal Reserve to come to the rescue with a special operation aimed at easing stress in financial markets. ... "It's unprecedented, at least in the post-crisis era," said Mark Cabana, rates strategist at Bank of America Merrill Lynch.

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The Current Fed Prime Rate is: 5.00%

(the last rate change -- a decrease of 25 basis points
[0.25 percentage point] -- occurred on September 18, 2019)

#1 | Posted by Sniper at 2019-09-18 04:07 PM | Reply

Obama's economy, I heard.

#2 | Posted by SheepleSchism at 2019-09-18 04:48 PM | Reply | Funny: 1

#2

So it'll be B. Hussein's recession too?

#3 | Posted by rstybeach11 at 2019-09-18 05:20 PM | Reply | Funny: 1

Obama's economy, I heard.

#2 | POSTED BY SHEEPLESCHISM

Maybe for the first year of Trump's presidency.

But after the tax cuts (his first major economic policy), it's his economy.

We never hear Republicans claiming it's their president's economy still the first year into a Democratic President's term. Why? Because the Democrat is usually dealing with a recession left by the previous administration.

#4 | Posted by Sycophant at 2019-09-18 06:21 PM | Reply | Newsworthy 1

Fun Fact: The Fed never had to cut rates once during Obama's term to help prop up the market. Not once in 8 years. In fact, they raised rates 6 times.

I don't remember Obama complaining about it.

#5 | Posted by Sycophant at 2019-09-18 06:24 PM | Reply

Fun Fact: The Fed never had to cut rates once during Obama's term to help prop up the market. Not once in 8 years. In fact, they raised rates 6 times. ...

#5 | POSTED BY SYCOPHANT

The all-time low was 0.25%. That's effectively zero. The Fed lowered it to this level on December 17, 2008. It was the 10th rate cut in a little more than a year. The Fed didn't resume raising rates until December 2015.

It's difficult to lower rates when you start at what is effectively zero.

www.thebalance.com

From the same source:

2015: GDP = 2.9%, Unemployment = 6%, Inflation = 0.7%

Dec 17 0.5% Growth stabilized so Fed began raising rates.

2016: GDP = 1.6%, Unemployment = 4.6%, Inflation = 2.1%

Dec 15 0.75% Fed maintained steady increase in rates.


That would be 2 rate increases totaling a half point during Obama's last 13 months in office and the only 2 of his entire presidency.

More from the same source:

2017: GDP = 2.4%, Unemployment = 4.1%, Inflation = 2.1%

Mar 16 1.0% Fed was steady on its path of normalizing its benchmark rate.
Jun 15 1.25% ^
Dec 14 1.5% ^

Fed Chair Jerome Powell (Since February 2018)
2018: GDP = 2.9%, Unemployment = 3.9%, Inflation = 1.9%

Mar 22 1.75% Fed projects steady growth.
Jun 14 2.0% ^
Sep 27 2.25% ^
Dec 19 2.5% Fed promised to stop raising rates.

2019: Q2 GDP = 2.1%, June Unemployment = 3.7%, May Inflation = 2.0%

Jul 31 2.25% Fed lowered rate despite steady growth.


So, for 7 years of Obama the Fed held the rate at 0.25% and during his last year raised it to 0.75%.

During 2.5 years of Trump the fed raised the rate 4 times and lowered it just once this July with a net increase of 1.5 points - or 3 times what Obama managed in about 1/3 of the time.

I don't think your fun fact made the point you think it made.

#6 | Posted by JeffJ at 2019-09-18 06:47 PM | Reply | Newsworthy 1

"In fact, they raised rates 6 times.
I don't remember Obama complaining about it.
#5 | POSTED BY SYCOPHANT"

Are you dense? Obama had a fed funds rate of near 0% his entire presidency. Raised rates 6 times? In what alternate universe do you live>

#7 | Posted by iragoldberg at 2019-09-18 06:52 PM | Reply

"In fact, they raised rates 6 times.
I don't remember Obama complaining about it.
#5 | POSTED BY SYCOPHANT"

Are you dense? Obama had a fed funds rate of near 0% his entire presidency. Raised rates 6 times? In what alternate universe do you live>

#8 | Posted by iragoldberg at 2019-09-18 06:52 PM | Reply

Oh, and don't even get me started about the treasury printing 'free money' multiple times and calling it "Quantitative Easing".

#9 | Posted by JeffJ at 2019-09-18 07:04 PM | Reply

#9 | POSTED BY JEFFJ

Not only that, there was also the loser loans to companies that had no chance of being successful - like Solyndra and the other 10's of billions thrown down the drain in the name of green energy.

Now, do you want the kicker?

If you remove the effect of fracking on GDP over the Obama term (direct spending and profits + effects of lower energy prices), the GDP was 0% or negative for the entirety of the Obama reign of stupidity. So, the one technology that they actively fought to keep from developing is the ONLY reason why GDP grew at all.

#10 | Posted by iragoldberg at 2019-09-18 08:17 PM | Reply

If the reserve has to be used someone either f'd up or their is a criminal scheme afoot.

#11 | Posted by Tor at 2019-09-18 08:35 PM | Reply

If the reserve has to be used someone either f'd up or their is a criminal scheme afoot.
#11 | POSTED BY TOR

Both - the fed f'd up when they were raising rates while the rest of the central banks in the world were cutting - which is why our rates are 2% and the rest of the developed world is 0% or negative. Because of Trump's economic plans, the US is still growing while Europe has been in a full blown recession for 6 months + and China is imploding. We will have some contagion because of that as it is a global economy.

Second, it is a criminal scheme by the fed and the 0.001% elites to suppress wages. When wages start to rise, the fed fears phantom inflation and jacks rates to cool economic growth - which that have done repeatedly over Trump's presidency. Wage growth is a GOOD THING - liberals used to understand that until Trump was elected. Now, it is "bring on a recession and bomb Iran". Liberals should be ashamed of themselves.

#12 | Posted by iragoldberg at 2019-09-18 08:44 PM | Reply

TLDR...the rich people in government did what it does best and complicated our economic systems so much over a century that they can't even figure out root causes of why something happens anymore. Even after the 2k8 crisis they couldn't put 2 and 2 together immediately until people found direct evidence of Clinton's policies being the root cause (the root cause that enabled the situation, not the root cause of why it occurred). It's a shame how bad it has gotten that even all the experts can't readily identify problematic symptoms.

#13 | Posted by humtake at 2019-09-19 11:48 AM | Reply

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