FED intrest rate

Will it ever go up or will it stay the same?

What do you guys think the effects would be if we see a hike?

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I don't care. I'm going to make money regardless. Don't worry about stuff the entire market can't predict.

Cant go up without triggering another recession, as there is too much otherwise unserviceable debt on the market, including US debt.

Nope, what will likely happen is During the next recession, Europe and Japan will fall apart, so all the capital will flow to the US, pushing up the dollar. To prevent massive deflationary pressures from these capital flows, the Fed will have no choice but to push into negative territory.

will go up next month another quarter point

In all honesty, they ar well aware a hike would shake the markets, and they want Clinton elected, so theyll wait till november for any hike even if its only 25 basis points.

(((they)))

Personally I don't see the point of hiking the intrest rate. Aside from bond investors rubbing their hands for a higher rate, who's really benefitting from this?

Everyone benefits because risk pricing mechanisms return to normalcy

is this aug jobs number is above 180k and has decent wage gains, then above is correct, they will hike in September.

>25 hike causing a recession

Nigga you dumb

>During the next recession, Europe and Japan will fall apart, so all the capital will flow to the US, pushing up the dollar
pls be b8

Most banks are projecting a hike q2 2017. They wont do anything this year, they just talk a lot of shit to create volatility for their jew friends on wall street.

Can you expand on that a little bit?

No they don't you stupid kike, if anything markets get even riskier, as in the long run interest rate changes depreciate the USD, but in the short run appreciate it. Expected inflation thus changes risk proportions for long term funds, and can force markets to re assess the debt issued by companies (bonds) due to the long term inflation effects of rate hikes.

Interest rates have been so low for so long. Seems like it's all going to collapse soon whether or not the fed raises rates.

Do you think rates will go much higher before the next recession? Legitimate question here.

They have no idea what to do, they realized Keynesian economics are a meme but they've gone too far to backtrack now

wow what a prediction so insightful you will probably be the next big short movie

When we have an increase to GDP that is smaller than the increase in the rate of inflation. Which means the dollar is less in demand since they are not as scarce. In order to stop the creation of money so rapidly and halt the devaluation of the dollar they increase interest rate. The result is less borrowing which means less dollars added to the money supply which makes the dollar more scarce and thus relatively more valuable. We benefit from having a currency that is not volatile in its ability to buy things

I meant to start that with "We will have." typo

Buy Bitcoin.

Thanks. But would there be a chance that the GDP would decrease also? Assuming that it might hit consumption.

i have a feeling mortage slaves will get blown the fuck out soon as the rates climb uncontrollably to 10% destroyer range

Yes yellen will raise it a quarter point to .5% this September.

>if anything markets get even riskier
you realize we are creating a bubble with artificially low interest rates that is inevitably going to pop? that is certain risk

>in the long run interest rate changes depreciate the USD
No, a weak economy and money printing depreciates the USD

keynesian economics just create permanent recessions lol

will be comfy once the housing bubble pops

Ok, Veeky Forums, hypothetically, what if the Fed holds an emergency meeting, goes "fuck it", and hikes to 5% tomorrow?

How would your positions be affected?

goy alert

I'm mostly in cash so who gives a fuck, bring it on Burt!

This. I think Kuroda is starting to realize that he's fallen for the biggest meme of them all but what is he supposed to do now. He's already nationalized the entire nikkei and there's no going back so they'll just put the pedal to the metal and hope for the best.

Here's how the Fed can get us out of this mess:

> CONFIDENCE & A ROAD MAP
At the next FOMC meeting; announce that there will be a 0.1% rate hike every 8 weeks until we hit 1%.
At which point rates will freeze for 16 weeks and the FOMC will announce the next hike-rate roadmap for the following six 8-week cycles.

Emphasize that these hikes will happen regardless of market conditions.
The plan must be absolutely adamantine for it to work.
Nothing short of a global catastrophe will halt it.

The market can handle itself just fine if it's provided ample time and reliable information to make plans.

How can the market make multi-year multi-trillion dollar plans when it has no clue what rates will be next month? Not to mention a year from now.

link somewhat related

sffed-education.org/chairthefed/default.html?startover=1