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Does a fed int increase mean a bad economy or good economy?😊
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the economy finally has recovered from the Great Recession. Inflation has finally come close to the Fed’s 2 percent target and, at 3.7 percent unemployment, the economy is at or very near full employment. Given a short-term boost by the Trump tax cut, the economy is growing at what is probably an unsustainably fast pace. In other words, demand is growing faster than supply and that is likely to push up the pace of price increases. So the Fed figures it’s time to take its foot off the gas pedal. It has lifted its key benchmark short-term interest rate to a range of 2 percent to 2 ¼ percent – which is around zero if you adjust for inflation. The Fed has not put its foot on the brake pedal yet, though several Fed officials would like to tap the brakes next year unless the economy slows substantially. This is all pretty standard textbook monetary policy. Sure, everyone would prefer an economy that grows faster and creates more good-paying jobs. The Fed’s job is to look ahead and say that a little restraint now – even if it means fewer jobs and higher mortgage rates – is better than letting the economy to overheat and forcing us to slam on the brakes and cause a recession.
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They are raising the interest rates too soon.
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The worst Decmeber since 1929.
It was predicted this was going to happen.
The globalists don't like tramp and is there way of getting back. So they say.
Real Estate is next.
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Home prices are increasing again and the cost of buying aka interest rates can't rise this quick with home prices, so one has to give. Even though the Fed raised the funds rate today mortgage rates actually dropped today.
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There are 5 comments on this blog. |