Started By
Message

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
126962 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 LSURussian
Member since Feb 2005
126962 posts
Posted on 1/29/16 at 2:09 pm to
quote:

but I'm going to go with they won't raise the rates.
That's definitely a possibility.

Most of the "experts" on CNBC are going the other way and saying the Fed will raise rates 4 times this year starting in March.

They say the Fed's credibility is on the line after saying for almost two years it was going to institute the tightening process.
Posted by stevengtiger
Member since Jul 2013
2778 posts
Posted on 1/29/16 at 2:23 pm to
quote:

They say the Fed's credibility is on the line after saying for almost two years it was going to institute the tightening process.


Agreed but I don't think we will see more than one more increase this year if anything. With China and the O&G crap going on, I don't think they want to do anything that will make the market anymore volatile than it already is. Everyone said the market was already priced for the last increase but I don't see it that way.

I am not expert in this at all. Just my thoughts.
Posted by Shepherd88
Member since Dec 2013
4590 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
11816 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 Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 1/29/16 at 3:27 pm to
I say zero.
Posted by LSU0358
Member since Jan 2005
7918 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 LSU0358
Member since Jan 2005
7918 posts
Posted on 1/29/16 at 4:03 pm to
quote:


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


What if the next big downturn has already started?
Posted by I Love Bama
Alabama
Member since Nov 2007
37715 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
10267 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
37126 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 Stingray
Shreveport
Member since Sep 2007
12420 posts
Posted on 1/29/16 at 7:07 pm to
China recession.

Russia recession.

OPEC recession.

Emerging markets recession.

EU QE.

Japan just announced negative interest rates.

And USA raises rates???
Posted by ItNeverRains
37069
Member since Oct 2007
25496 posts
Posted on 1/29/16 at 8:58 pm to
Rates were back under 4%today on 30 year and right at 3% on 15.
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
126962 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 Iowa Golfer
Heaven
Member since Dec 2013
10230 posts
Posted on 2/11/16 at 8:03 am to
Yellen is Keynesian and dovish. She will resist increasing interest rates. She (they) might have to raise rates to save face. I'm in the minority, but she is the wrong person for the job, and the Fed has made numerous blunders in recent years. Her best work in my opinion was during her fairly short gig at CBO.
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 LSURussian
Member since Feb 2005
126962 posts
Posted on 2/11/16 at 8:10 am to
quote:

2 times max for '16
That was my original prediction in the first post in the thread. A lot has happened since then.....
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?
first pageprev pagePage 1 of 4Next pagelast page

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram