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Forecast when the Fed Reserve will increase interest rates again & how often?

Posted on 1/29/16 at 1:48 pm
Posted by LSURussian
Member since Feb 2005
126968 posts
Posted on 1/29/16 at 1:48 pm
My guess is we won't see the Fed raise rates again before June and that will be the only rate increase this year until after the November election. Then one more increase before the end of 2016.

Both times the increase will be by +.25%.

Anybody else want to guess?
Posted by CherryGarciaMan
Sugar Magnolia
Member since Aug 2012
2497 posts
Posted on 1/29/16 at 2:05 pm to
You are much more informed about monetary policy than I am, but I'm going to go with they won't raise the rates.
Too much global turmoil and the national economic forecast ain't grand.
Posted by Shepherd88
Member since Dec 2013
4592 posts
Posted on 1/29/16 at 3:00 pm to
Futures are pointing to no rate increases this year but I'm also gonna go with your same prediction of 2 rate hikes in 2016.
Posted by tigeraddict
Baton Rouge
Member since Mar 2007
11831 posts
Posted on 1/29/16 at 3:23 pm to
Question is who yields more influence - Party in power not wanting to see any increases, or the FED know it needs to be done.

Even with the O&G plunge and Asia market volatility, FED needs to raise the rates. Otherwise they will have zero mechanism to adjust rates to spur activity in the next big downturn

Posted by LSU0358
Member since Jan 2005
7920 posts
Posted on 1/29/16 at 4:02 pm to
I'll go with 0. I think Feb to March are going to be pretty ugly in the equity market. A few months for a dead cat bounce and then ugly into 2017.

Posted by I Love Bama
Alabama
Member since Nov 2007
37739 posts
Posted on 1/29/16 at 4:27 pm to
Zero. The dollar is already too strong.
Posted by TigerDeBaiter
Member since Dec 2010
10268 posts
Posted on 1/29/16 at 4:35 pm to
I'll go with raise in June, hopefully oil has a little bit a of (sustained) rebound into summer.

Then cut back again in November. It's about time for a total collapse/reset. New president and all.

We'll see, I really have no idea.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37164 posts
Posted on 1/29/16 at 4:46 pm to
The Fed has painted themselves into a corner. Traditionally raising rates is a tool to fight inflation.

I believe there is an internal interest rate for a normal functioning economy. When it gets too hot, raise rates, when it gets too cool, lower them.

But because the Fed left the rates low for so long, I think it has effectively changed that internal rate. The whole mother's milk thing.

Interest rates were left so low for essentially 7 years. That's basically about the time of a typical economic cycle.

Our economy is by no means booming. Thus, raising rates will choke down growth. We don't really have any room to lower them, either.

I can't predict what the fed will do with any accuracy, because of the corner they are in. If I have to guess, I'll say no raises until after the fall elections.

As to the question of influence, I think if there was no politicial influence, rates would have gone up long before now.
Posted by Gevans17
Member since Dec 2007
1135 posts
Posted on 2/2/16 at 12:21 pm to
we raise while everyone else is going negative rates
Posted by LSURussian
Member since Feb 2005
126968 posts
Posted on 2/11/16 at 7:52 am to
Does anyone want to change his prediction?

I do.

No rate increases this year.
Posted by LSU1NSEC
Member since Sep 2007
17243 posts
Posted on 2/11/16 at 8:08 am to
2 times max for '16
Posted by BobRoss
Member since Jun 2014
1694 posts
Posted on 2/11/16 at 8:15 am to
Sweden just went negative on their rates. How the hell does that work?
Posted by LSUwag
Florida man
Member since Jan 2007
17319 posts
Posted on 2/11/16 at 12:47 pm to
They won't do much until January 2017. The day Trump (or any other Republican) takes office they will raise the hell out of it.
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