Fed Raises Interest Rate 0.75% | Drudge Retort

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Wednesday, June 15, 2022

Fed Raises Interest Rate 0.75%

The Federal Reserve on Wednesday hiked interest rates by three quarters of a percentage point, its most aggressive move yet to try to control inflation, as it squeezes the U.S. economy.

Posted by jpw at 11:30 PM | 50 COMMENTS | permalink | Comment on This Entry |

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I wonder how much our online savings account will go up LOL? And, how long will we have to wait for such.

#1 | Posted by rosemountbomber at 2022-06-15 08:24 PM | Reply

Back to those mid 90s level interest rates.

When the economy was booming...

#2 | Posted by snoofy at 2022-06-15 09:20 PM | Reply | Funny: 1

This should help with the low income housing and homeless crisis.

#LetsgoBrandon!

#3 | Posted by SheepleSchism at 2022-06-15 11:51 PM | Reply

From what I understand about the home loan industry is that historically the average is 5-6 percent so really they are average now... and quite frankly more realistic if you ask me. I felt those uber-low rates were a bubble waiting to burst.

#4 | Posted by RightisTrite at 2022-06-16 12:01 AM | Reply

That rate hike has to be worth at least 3 bankruptcies to the demented orange pedo.

#5 | Posted by reinheitsgebot at 2022-06-16 12:01 AM | Reply

#2 | POSTED BY SNOOFY

Without those mid 90s levels of debt ... . That's not how this works ...

Good luck, better start prepping like the Obamas ...

#4 | POSTED BY RIGHTISTRITE

Its a bold strategy Cotton, let's see how that works out for Biden and the country.

#6 | Posted by oneironaut at 2022-06-16 12:41 AM | Reply

The strategy is similar to what Volcker did in the early '80's to get inflation under control. Unfortunately things got worse before they got better.

#7 | Posted by BellRinger at 2022-06-16 12:42 AM | Reply

things got worse before they got better.

#7 | Posted by BellRinger

No, this time it's over. Debt / taxpayers is over $2 million per. Only hyperinflation can correct this balance, and the system will seek a center.

The bell tolls on all our foolishness.

#8 | Posted by HeliumRat at 2022-06-16 12:50 AM | Reply | Funny: 1

#8 | POSTED BY HELIUMRAT

Agreed .. Snoofy do you understand why?

#9 | Posted by oneironaut at 2022-06-16 12:54 AM | Reply | Funny: 1

What? Inflation isn't real. It's all evil corporate price gouging.

#10 | Posted by sitzkrieg at 2022-06-16 08:06 AM | Reply

So many economic "experts" here. Hilarious.

#11 | Posted by LegallyYourDead at 2022-06-16 09:33 AM | Reply

"Debt / taxpayers is over $2 million per. "

Maybe Fat Donnie's multi-trillion dollar tax cut for the wealthy wasn't such a genius move, now was it?

#12 | Posted by LegallyYourDead at 2022-06-16 10:11 AM | Reply

What's funny is it seems some right wingers here don't seem to get it - the President doesn't control the Fed. #LetsGoMorons

#13 | Posted by GalaxiePete at 2022-06-16 10:22 AM | Reply | Newsworthy 1

If a percentage point is going to make or break a loan then perhaps the borrower can't afford it.

Seriously people.

Uber-low rates equal a crash in the making.

#14 | Posted by RightisTrite at 2022-06-16 10:26 AM | Reply | Newsworthy 1

#14

30 yr fixed mortgage rates are at about what they were when I bought my house in 2005. We paid that for 15 years and refinanced last October for a 15 yr at 2.75, took 20k in equity and did the roof, doors, etc.

We've been happy to pay $800/month mortgage when others around us are renting for $1200.

My parents rate when they bought in the 90s was around 10%.

#15 | Posted by horstngraben at 2022-06-16 10:42 AM | Reply

Perspective:
fred.stlouisfed.org

(inspired by Horstngraben and RightisTrite)

#LetsGoMorons
I want a flag to put on the back of my pick up truck that has that! LMAO!

#16 | Posted by YAV at 2022-06-16 10:48 AM | Reply

(god no, I wouldn't actually do that unlike the morons that have the "let's go Brandon" flags on their trucks)

#17 | Posted by YAV at 2022-06-16 11:09 AM | Reply

The bell tolls on all our foolishness.

#8 | POSTED BY HELIUMRAT

What a bunch of snowflakes.

When the going gets tough ... they melt. And whine.

It's like they don't know we survived the 70s and 80s.

It's like they don't know it's a global problem and they are all ready to be the first ones on the planet to throw up their hands and surrender. What a bunch of wussies.

The 30-year fixed mortgage rate reached a pinnacle of 18.4 percent in October 1981, according to Freddie Mac

#18 | Posted by donnerboy at 2022-06-16 12:29 PM | Reply | Newsworthy 1

#LetsgoBrandon!

#3 | POSTED BY SHEEPLESCHISM

Unfortunately, it's not going to help you be any less of a moron.

#19 | Posted by jpw at 2022-06-16 12:39 PM | Reply | Newsworthy 2

We're probably getting back to healthier economic conditions and breaking our addiction to cheap debt was going to be painful.

Let's just hope the banks don't have any surprises for us requiring another couple trillion dollars to keep them from going under.

#20 | Posted by jpw at 2022-06-16 12:55 PM | Reply

#18

Granted, home prices were at most 1/3 of what they are now. I'm not sure how the lower home prices and the 18% rate translates to today accounting for inflation.

But yeah, people were still buying houses. And I'd bet the investment paid off.

#21 | Posted by horstngraben at 2022-06-16 12:58 PM | Reply

#21 -

Perspective. $31,953.91 October 1981 is equivalent to $100,000 today.
www.bls.gov

#22 | Posted by YAV at 2022-06-16 02:42 PM | Reply

Thank God I had the parents I did.

All this time when people have been rerunning up their
credit card debt and buying stuff off of Amazon like
its going out of style, I've been paying off debt.
Two months ago, I still owed $5,500 on my 2018 truck,
now I owe $750.00 on it. One or two more payments at most,
then I just have the house.

When one has sudden windfalls or extra in life, that's the time to
pay off bills, not run up more debt. America could have learned
a lot from my Depression Era parents...

#23 | Posted by earthmuse at 2022-06-17 06:46 AM | Reply

America could have learned
a lot from my Depression Era parents...

What??!?!?! You mean when gas is low it's a bad idea to buy SUVs? You mean it's bad to buy a giant new house right at the limit of what you can afford while rates are at historically low levels?!?!?! You mean basing an entire economy on consumerism is a bad thing?!?!?!

#24 | Posted by jpw at 2022-06-17 08:18 AM | Reply

#21

That's not entirely true. Per square foot, the average price of a house hasn't changed much since the 1950. What has changed is the size of the houses being built.

#25 | Posted by madbomber at 2022-06-17 11:36 AM | Reply

"You mean basing an entire economy on consumerism is a bad thing?!?!?!"

Not sure exactly what you're meaning is, but the current inflation predicament is a direct result of government policy introduced during the pandemic. Primarily dumping trillions of dollars into an economy that had fewer goods and services to offer.

Textbook econ 101.

#26 | Posted by madbomber at 2022-06-17 11:40 AM | Reply

It's not that simple.

But most righties think the only inflationary pressure is money printing because they don't really understand the concept beyond bumper sticker slogans.

#27 | Posted by jpw at 2022-06-17 11:51 AM | Reply

I can't wait for banks to save us all! (the fed is owned by banks)

#28 | Posted by Brennnn at 2022-06-17 03:39 PM | Reply

I can't wait for banks to save us all! (the fed is owned by banks)

#29 | Posted by Brennnn at 2022-06-17 03:39 PM | Reply

I can't wait for banks to save us all! (the fed is owned by banks)

#30 | Posted by Brennnn at 2022-06-17 03:39 PM | Reply

"But most righties think the only inflationary pressure is money printing because they don't really understand the concept beyond bumper sticker slogans."

How many econ classes have you taken?

#31 | Posted by madbomber at 2022-06-17 04:11 PM | Reply

"How many econ classes have you taken?

#31 | POSTED BY MADBOMBER AT 2022-06-17 04:11 PM"

He took one econ class for a day. He didn't hear what he wanted to hear so he proclaimed the professor was stupid, dropped the class, proclaimed himself an expert on economics and never looked back. And here we are.

You're wasting your time trying to engage someone who thinks he knows everything about everything.

#32 | Posted by BellRinger at 2022-06-17 04:25 PM | Reply

The strategy is similar to what Volcker did in the early '80's to get inflation under control. Unfortunately things got worse before they got better.

#7 | POSTED BY BELLRINGER AT 2022-06-16 12:42 AM |

Yep and only with double digit interest and several years of time. anyone thinking this is something that'll be gone by Christmas is seriously detached from reality.

#33 | Posted by lfthndthrds at 2022-06-17 04:28 PM | Reply

How many econ classes have you taken?
#31 | POSTED BY MADBOMBER

Here's an idea:

Why don't you show us you've taken more, by listing the other inflationary pressures!

#34 | Posted by snoofy at 2022-06-17 04:33 PM | Reply

"Why don't you show us you've taken more, by listing the other inflationary pressures!"

I feel like I did that in #26

#35 | Posted by madbomber at 2022-06-17 04:43 PM | Reply

I'm just surprised one of your people has yet to blame it on tax cuts, white supremacy, fascism, capitalism, or 1/6.

You should try harder.

#36 | Posted by madbomber at 2022-06-17 04:44 PM | Reply

Too little too late as the Fed has screwed us by their movements/lack of movement for over 15 years.

#37 | Posted by MSgt at 2022-06-17 04:52 PM | Reply

yet to blame it on tax cuts, white supremacy, fascism, capitalism, or 1/6.

#36 | POSTED BY MADBOMBER AT 2022-06-17 04:44 PM | REPLY

You forgot Russia.

#38 | Posted by lfthndthrds at 2022-06-17 05:02 PM | Reply

"Why don't you show us you've taken more, by listing the other inflationary pressures!"

I feel like I did that in #26
#35 | POSTED BY MADBOMBER

The only thing you identified in #26 was government spending.

Are there other inflationary pressures, or nah?

#39 | Posted by snoofy at 2022-06-17 08:07 PM | Reply

How many econ classes have you taken?

#31 | POSTED BY MADBOMBER

Who gives a ----.

It's mostly garbage anyway.

In any case, what's wrong with my statement? What did I get wrong about inflation?

#40 | Posted by jpw at 2022-06-17 08:16 PM | Reply

You're wasting your time trying to engage someone who thinks he knows everything about everything.

#32 | POSTED BY BELLRINGER

That's your ignorant, whiny ----- take on me.

Because you don't actually know ---- about what you post behind surface level garbage that leaves you incapable of providing supporting info for your positions.

#41 | Posted by jpw at 2022-06-17 08:22 PM | Reply

It's not that simple.
But most righties think the only inflationary pressure is money printing because they don't really understand the concept beyond bumper sticker slogans.
#27 | POSTED BY JPW

No they don't, conservatives in general tend to be better educated on the economy and understand more than the average Liberal.

Here's a perfect example ...

White House exploration of gas rebate cards complicated by chip shortages
www.washingtonpost.com

This will create what type of inflation?

What kind of inflation is Yellen worried about here on Biden spending bills?
"Privately, Yellen agreed with [former Treasury Secretary Lawrence] Summers that too much government money was flowing into the economy too quickly," wrote Owen Ullmann, a long-time Washington journalist and author of "Empathy Economics," due out Sept. 27. The book excerpt was first reported by Bloomberg.

Government spending is what type of inflation? You have 50% chance of getting it correct ... Does government spending create localized or global inflation over time ?

Its not difficult, but you two are really having a hard time with it.

#42 | Posted by oneironaut at 2022-06-17 08:27 PM | Reply

#36 I don't have people numbnuts.

#43 | Posted by jpw at 2022-06-17 09:03 PM | Reply

they don't, conservatives in general tend to be better educated on the economy and understand more than the average Liberal.

No, they don't. They think they do but it's almost always canned answers with zero ability to actually assess data and independent information.

For instance, this thread.

#44 | Posted by jpw at 2022-06-17 09:04 PM | Reply

"conservatives in general tend to be better educated on the economy and understand more than the average Liberal."

Let me guess: You're not an average liberal.

#45 | Posted by snoofy at 2022-06-18 12:04 AM | Reply

@#42 ... No they don't, conservatives in general tend to be better educated on the economy and understand more than the average Liberal. ...

If you had made that assertion, say, 10 years ago I would have agreed to some respect with it.

But nowadays?

Do you really think that those who call themselves "conservatives" nowadays have a couple of neurons to rub together?

I mean really.

The current conservative is more likely to be a cult member than the thinker of past conservatives.

Face it, fmr Pres Trump destroyed the conservative appellation with his requirement for unfettered adulation of all he says and does.

Let me say that again, hoping it might sink in...

Face it, fmr Pres Trump destroyed the conservative appellation with his requirement for unfettered adulation of all he says and does.

Lemme ask a question - if a conservative who is running for office happens to say that fmr Pres Trump's lies about the election being stolen are false, what do you think that person's chances of being supported by the current leader of the Republican party would be.

Yeah. That's what your comments are up against.

The current conservatives do not have the free-thinning ability that your comment presumes they have.

Deal with it.

#46 | Posted by LampLighter at 2022-06-18 12:32 AM | Reply

You're not an average liberal.
#45 | POSTED BY SNOOFY

No I am not ... but I talk the average Liberal everyday, they basically believe passing out money (college,schools, welfare etal) makes things better. An educated response would understand money only does so much, but mostly it destroys.

Manchin saved the Democrat party .. but you average Liberals think he's a villain.

It's hilarious you question others understanding on economics but cant articulate a response to my questions worthy of a fifth grader.

#47 | Posted by oneironaut at 2022-06-18 12:33 AM | Reply

"but cant articulate a response to my questions"

I wasn't aware you had asked me any questions.

#48 | Posted by snoofy at 2022-06-18 12:36 AM | Reply

@#47 ... money only does so much, but mostly it destroys. ...

I'd be interested in the substantiation of that assertion.

For starters, if money only does so much, why do so many folk want more money? Isn't Capitalism about making more money?

thx.

#49 | Posted by LampLighter at 2022-06-18 12:49 AM | Reply

@#47 ... It's hilarious you question others understanding on economics...

Your comment seems to claim your alias has an understanding of economics.

Please demonstrate that understanding.

Or point to comments from your current alias that shows such an understanding.

thx.

#50 | Posted by LampLighter at 2022-06-18 12:52 AM | Reply

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