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It's Official - The Federal Reserve Raises Rate 1/4 Point (Discussion Thread)

Posted on 12/16/15 at 1:07 pm
Posted by Shankopotomus
Social Distanced
Member since Feb 2009
21057 posts
Posted on 12/16/15 at 1:07 pm
Initial market reaction:

Posted by TrueTiger
Chicken's most valuable
Member since Sep 2004
67941 posts
Posted on 12/16/15 at 1:08 pm to
The market seems ready for this.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37106 posts
Posted on 12/16/15 at 1:12 pm to
I would think this was pretty much priced into the market already.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11106 posts
Posted on 12/16/15 at 1:12 pm to
Has Yellen provided forward guidance?
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/16/15 at 1:13 pm to
This was probably the most pre-announced change in interest rates the Fed has ever had.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/16/15 at 1:14 pm to
quote:

Has Yellen provided forward guidance?
From the FOMC's announcement press release today:
quote:

"The stance of monetary policy remains accommodative after this increase, thereby supporting further improvements in labor market conditions and a return to 2 percent inflation."
Posted by Shankopotomus
Social Distanced
Member since Feb 2009
21057 posts
Posted on 12/16/15 at 1:15 pm to
I think they were proud of themselves for finally pulling the trigger after a bunch of WHOOPS! nevermind almost hikes over the past few quarters....
Posted by Shankopotomus
Social Distanced
Member since Feb 2009
21057 posts
Posted on 12/16/15 at 1:17 pm to
I think I saw something out there (maybe on twitter) - but I have been a little busy so sort of just watching the drive-by posts about it
Posted by accnodefense
Trump Fan
Member since Dec 2010
6279 posts
Posted on 12/16/15 at 1:17 pm to
It's about time

CD's are a disgrace these days.
Posted by LSU0358
Member since Jan 2005
7918 posts
Posted on 12/16/15 at 1:17 pm to
Thus ends the Bond bull market...though bonds won't fall apart IMO.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11106 posts
Posted on 12/16/15 at 1:22 pm to
High yields have been...
Posted by Shepherd88
Member since Dec 2013
4587 posts
Posted on 12/16/15 at 2:20 pm to
Lol Cd's have historically produced a net negative real return after you account for inflation and taxes.
Posted by LSU0358
Member since Jan 2005
7918 posts
Posted on 12/16/15 at 2:24 pm to
quote:

High yields have been...


The junk bonds have been getting hammered. I think higher grade bonds will be a slow and steady grind downwards. IMO opinion the best case scenario in bonds is maintaining value in the case of buying and reinvesting yields.
Posted by PlanoPrivateer
Frisco, TX
Member since Jan 2004
2796 posts
Posted on 12/16/15 at 2:31 pm to
Still watching her presser. I think she is handling it well. Some of the questions sound like the questioner didn't understand her statement.
Posted by jmh5724
Member since Jan 2012
2136 posts
Posted on 12/16/15 at 2:31 pm to
I will start building next month. How much do you think this will effect interest rates and will they increase it again in the next 6 months?
This post was edited on 12/16/15 at 2:34 pm
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/16/15 at 2:37 pm to
quote:

Some of the questions sound like the questioner didn't understand her statement.
That happens every time. When Greenspan was Chairman he would screw with persons asking him questions (especially when he was testifying before congress) by asking the questioner a clarification about the question before he answered.

Ted Kennedy always had to turn around and ask an aide for help replying. He never understood the questions he read to Greenspan written for him by one of his aides.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/16/15 at 2:43 pm to
quote:

How much do you think this will effect interest rates
Negligible. The increase was already factored into existing rates. In fact, rates for 10 year treasury securities, which most mortgage lenders use to tie their 30-year mortgage rates to, fell a little bit (a couple of bp) after the announcement was made today.
quote:

will they increase it again in the next 6 months?
Probably, in March or April, IMO. Another .25%.
Posted by iknowmorethanyou
Paydirt
Member since Jul 2007
6548 posts
Posted on 12/16/15 at 2:51 pm to
quote:

Lol Cd's have historically produced a net negative real return after you account for inflation and taxes.


Get out of here with your facts!
Posted by man117
Los Angeles
Member since Jul 2009
674 posts
Posted on 12/16/15 at 8:26 pm to
quote:

I will start building next month.

I'm in the same boat, loan is supposed to close next week. Hopefully rates stay steady for the next 6 months or so.
Posted by ItNeverRains
37069
Member since Oct 2007
25466 posts
Posted on 12/17/15 at 4:57 am to
The impact is meaningless to anyone getting a mortgage.on 200k at say 4 vs now 4.25, it's 11k on life of loan over 30 years.
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