Fed Delivers Third-Straight Big Hike, Sees More Increases…

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Fed Delivers Third-Straight Big Hike, Sees More Increases Ahead

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  1. > Federal Reserve officials raised interest rates by 75 basis points for the third consecutive time and forecast they would reach 4.6% in 2023, stepping up their fight to curb inflation that’s persisted near the highest levels since the 1980s.

    > Officials expect the benchmark rate to rise to 4.4% by year end and 4.6% during 2023,

    > Further ahead, rates were seen stepping down to 3.9% in 2024 and 2.9% in 2025.

  2. So pretty much exactly as expected. Will be interesting to see how the market reacts to Powell’s speech at 2:30. I’m guessing it’s going to be basically the exact same message and a 75bp hike the next meeting will be on the table.

  3. Can someone explain why the fed funds rate isn’t just a number like 3.25% ?

    What does it mean that “the Committee decided to raise the target range for the federal funds rate to 3 to 3-1/4 percent” – this quote is directly from the press release?

    In Canada the central bank rate is an actual number – 3.25% at the moment.

    This is the interest rate for canadian banks to borrow money from the bank of canada.

    What does it mean in the US that it is a ‘target range’?

    And if the current rate is a ‘target range’ why do they forecast an actual number like 4.6% in 2023

  4. You know, if they hadn’t dropped the fucking rate to zero they wouldn’t have to do this right now! It’s almost like a powerful group of people with massive holdings and who would stand to benefit most from an economic boom and then whose companies could raise the prices of goods and services based on the resulting inflation, pressured the “Fed” to do it! But, that would be just crazy right???

  5. Right now, all I want to hear is what companies are doing.

    “Loss of profits” is still echoed. Wallstreet expected returns aren’t being forecasted and being muted but they are yet to declare a loss.

    If the labor market wasn’t so tight the term layoff would be heard more in corporate speak. e.g. you are a hourly wage earner would you work in FedEx or Amazon? both options are horrible but Amazon is still advertising for holiday season and what is FedEx doing? This is happening for low wage earners.

    Things are even more interesting at white/blue collar jobs where the fight for remote jobs/talent is still reigning and companies currently losing.

  6. I wish the fed would have done 1.25 instead of this weak sauce .75 . Why not also increase savings rate too. That way it will encourage more savings. I understand that they don’t want to shock the system with a huge rise but 1.25 seems reasonable considering that .75 has helped but it’s still not sufficient for the problem.

  7. I love how wave growth seems to always be present in the FED’s outlook. Not profit, not deposits or stock buybacks, but wage growth. If “wage growth” is too high, fuck everything else.

    My pennies mean nothing compared to Musk’s millions.

  8. JP says “I wish there were a painless way to do that. There isn’t.”

    partially correct, mostly due to the same greed whores who refuse to do the right thing for employees and believe “I built this alone”. Sickening.. problems caused and perpetuated by the same people and who suffers.

    Yet, we keep coming back for scraps.

  9. What % number will it need to reach before the interest payments on the debt exceed receipts?

    Somewhere along this line, the Fed will need to choose between the $USD and inflation.

  10. It seems to me the Fed’s mandate of 2% inflation is archaic and out of line with what Washington has done.

    For me a bit of credibility can be had for the Fed to acknowledge that fact and let inflation run a little hot for a little longer to work off the insane amounts of stimulus.

    It seems so counterproductive, and downright harmful to be so hawkish to the point of crushing the economy. Any positive gains in public policy from Washington are completely offset by soul crushing rates. Which will have the exact opposite effect her by increasing poverty, putting people out of work, and eliminating any small business ability to thrive.

    Come on already Mr Chairman. Admit that you cannot solve the employment and wage spiral by crushing everybody else. This is the Baby Boomer retirement and new job market that will be with us for a long time… Just let it run hot, and make Washington take care of their problem by reducing spending now

  11. So inflation is at 8%.

    The fed at the rate it’s going is going to be 4.4% at the end of the year.

    This is like peeing on a forest fire. This is making me angry. The fed isn’t addressing the issue at all. The fed needs to do 1.00% rate hikes with each meeting to catch inflation

  12. They’re just biding their time for all their buddies before they pull the rug and get to buy up everything for cheap, again.

    They know exactly what they’re doing. Fuck the Fed, fuck Powell, fuck the SEC, and fuck Wall Street.

    Greedy ass bastards

  13. Insanity is doing the same thing over and over and expecting different releases. The fed keeps raising rates yet inflation remains high. When is the government going to realize we need a different solution? Raising rates doesn’t help global supply chain issues when they are due to narrowing supply, war, and rising fuel costs. They’re trying to tramper demand when that’s not the issue.