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Started By
Message
Yellen says interest rates may need to increase
Posted on 5/4/21 at 12:15 pm
Posted on 5/4/21 at 12:15 pm
Treasury Secretary Janet Yellen on Tuesday said that interest rates may need to increase to keep the recovering economy from going into overdrive on the heels of significant government spending.
“It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat, even though the additional spending is relatively small relative to the size of the economy,” she said in response to a question on a panel hosted by The Atlantic about whether the economy could absorb the large dose of spending President Biden was proposing.
"Even though the additional spending is relatively small relative to the size of the economy, it could cause some very modest increases in interest rates,” she added.
LINK
“It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat, even though the additional spending is relatively small relative to the size of the economy,” she said in response to a question on a panel hosted by The Atlantic about whether the economy could absorb the large dose of spending President Biden was proposing.
"Even though the additional spending is relatively small relative to the size of the economy, it could cause some very modest increases in interest rates,” she added.
LINK
8
Posted on 5/4/21 at 12:17 pm to Jbird
They may indeed. We should start doing that ten years ago.
Posted on 5/4/21 at 12:18 pm to Jbird
What is your analysis on this?
Good for savers, bad for borrowers? I think with all the printed money being circulated and regular Americans taking it in the shorts on savings rates, this could be good?
Good for savers, bad for borrowers? I think with all the printed money being circulated and regular Americans taking it in the shorts on savings rates, this could be good?
Posted on 5/4/21 at 12:19 pm to Jbird
The level of control over the economy will never end well. It’s like these climate change fricks that think they can know all the variables that control the climate and model for it.
We are fricked.
We are fricked.
Posted on 5/4/21 at 12:19 pm to texashorn
quote:Except for the dilution of purchasing power of the printed money, what happens if hiking rates doesn't work?
I think with all the printed money being circulated and regular Americans taking it in the shorts on savings rates, this could be good?
This post was edited on 5/4/21 at 12:21 pm
Posted on 5/4/21 at 12:20 pm to Jbird
quote:this is why we can't have nice things.
Were inflation to take hold in a serious way, it would erode purchasing power, particularly for low earners, and could require interest rate hikes to get inflation back in line. An increase in interest rates could slow or even reverse the economic recovery.
Posted on 5/4/21 at 12:22 pm to texashorn
quote:
Good for savers, bad for borrowers? I think with all the printed money being circulated and regular Americans taking it in the shorts on savings rates, this could be good?
The recent hikes on interest rates seem to indicate that it would be wise to take your commie loving arse to venezuela
Posted on 5/4/21 at 12:27 pm to TheRouxGuru
Would you prefer to explain further, or just hurl unfounded insults?
I get you think this is a communist plot to undermine capitalism.
I get you think this is a communist plot to undermine capitalism.
This post was edited on 5/4/21 at 12:29 pm
Posted on 5/4/21 at 12:29 pm to Jbird
can you say STAGFLATION?
Posted on 5/4/21 at 12:30 pm to udtiger
I haven’t heard that word since Jimmy Carter. Well there you go...
Posted on 5/4/21 at 12:32 pm to texashorn
Maybe, but I think our economy is kaput if we kill the housing market (which raising interest rates will do).
Posted on 5/4/21 at 12:35 pm to Bunk Moreland
quote:
Maybe, but I think our economy is kaput if we kill the housing market (which raising interest rates will do).
Modest interest rate increases won't kill the housing market
The absurdly low interest rates have already inflated the shite out of it
Posted on 5/4/21 at 12:35 pm to Bunk Moreland
Our economy is a giant bubble that lower interest rates works to keep inflating. Raising interest rates is the right move but will cause extraordinary pain because of the last decade of terrible monetary policy
I think it’s too late to matter, honestly. Inflation is here and a lot of it is supply side issues even today. I think we will see short term stagflation and the USD is still going to face debasement even after an interest rate hike
I think it’s too late to matter, honestly. Inflation is here and a lot of it is supply side issues even today. I think we will see short term stagflation and the USD is still going to face debasement even after an interest rate hike
This post was edited on 5/4/21 at 2:09 pm
Posted on 5/4/21 at 12:36 pm to texashorn
Just this morning that term reared it's ugly head.
It looks from the outside, though, that the current president wants to use the same playbook used by Carter during his one disastrous term in the Oval Office.
I first learned of the term stagflation during the Carter years.
The Federal Reserve seems intent on letting inflation run a little wild until they even threaten to raise interest rates. But rising prices are starting to hurt working-class families the hardest.
Lumber prices are through the roof, making new home construction prohibitively expensive for younger families who want to buy their first house.
Because of Democratic policies that give generous unemployment benefits, it is hard for retail businesses and restaurants to find workers at an affordable cost. Wage inflation is a natural result and that will cause these businesses to raise their prices.
For some pockets of the economy, especially working-class voters of all races and creeds, stagflation is already here. Biden’s spending plans will only make stagflation worse.
His solitary masked walks, as captured by the media, don’t inspire confidence, they don’t project strength, they don’t emote energy. They point to national malaise, much like Carter did in 1979.
Biden reportedly is a big fan of Carter, who has become a national icon in his later years, and rightfully so. But Carter’s four years in the White House were a disaster. It seems that Biden would rather repeat history than learn from it. LINK
It looks from the outside, though, that the current president wants to use the same playbook used by Carter during his one disastrous term in the Oval Office.
I first learned of the term stagflation during the Carter years.
The Federal Reserve seems intent on letting inflation run a little wild until they even threaten to raise interest rates. But rising prices are starting to hurt working-class families the hardest.
Lumber prices are through the roof, making new home construction prohibitively expensive for younger families who want to buy their first house.
Because of Democratic policies that give generous unemployment benefits, it is hard for retail businesses and restaurants to find workers at an affordable cost. Wage inflation is a natural result and that will cause these businesses to raise their prices.
For some pockets of the economy, especially working-class voters of all races and creeds, stagflation is already here. Biden’s spending plans will only make stagflation worse.
His solitary masked walks, as captured by the media, don’t inspire confidence, they don’t project strength, they don’t emote energy. They point to national malaise, much like Carter did in 1979.
Biden reportedly is a big fan of Carter, who has become a national icon in his later years, and rightfully so. But Carter’s four years in the White House were a disaster. It seems that Biden would rather repeat history than learn from it. LINK
Posted on 5/4/21 at 12:38 pm to texashorn
quote:
Good for savers, bad for borrowers? I think with all the printed money being circulated and regular Americans taking it in the shorts on savings rates, this could be good?
Good for savers. Bad for borrowers and business.
Using the fed to tamper inflation is acceptable when the cause of the inflation is from a red hot economy and the purchasing thereforth.
It’s. Not so good in a recovery when the inflation is due to government ineptitude, printing money, and people throwing around free money like their rich uncle is in town for the weekend.
Posted on 5/4/21 at 12:40 pm to texashorn
quote:
Would you prefer to explain further, or just hurl unfounded insults?
I’ll do both.
quote:
I get you think this is a communist plot to undermine capitalism.
I never said that. I just feel like you and everyone who thinks like you do are horrible for this country. A bunch of brainwashed soyboys who have been completely mindfricked by a corrupt media that’s ran by socialist/communist politicians. And you don’t even see it. You’re being manipulated and used, yet y’all will stand on top of the highest levee and shout about how smart you are and how racist everyone else is. Tell me how I’m wrong
This post was edited on 5/4/21 at 12:43 pm
Posted on 5/4/21 at 12:45 pm to Powerman
quote:
Modest interest rate increases won't kill the housing market
Kill? No. Impact in a way that can make people freak out? Yes. Anyone that hasn't sold or refi'd by now is an idiot.
Posted on 5/4/21 at 12:47 pm to texashorn
quote:
Good for savers, bad for borrowers? I think with all the printed money being circulated and regular Americans taking it in the shorts on savings rates, this could be good?
What might be ‘good’ is to STOP PRINTING MONEY AND HANDING IT OUT TO PEOPLE FOR NOTHING OTHER THAN FOGGING A MIRROR.
This post was edited on 5/4/21 at 12:53 pm
Posted on 5/4/21 at 12:48 pm to Jbird
welcome to Bidens America
Posted on 5/4/21 at 12:50 pm to Jbird
quote:
even though the additional spending is relatively small relative to the size of the economy,
Um
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