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re: Feds Raise Rates a Quarter Point

Posted on 9/16/26 at 2:32 pm to
Posted by Rip Torner
Member since Jul 2023
3632 posts
Posted on 9/16/26 at 2:32 pm to
You are correct. Unfortunately, burning it all down isn’t an option and living in a fantasy land where that exists isn’t a solution either
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
100665 posts
Posted on 9/16/26 at 2:34 pm to
quote:

You are correct. Unfortunately, burning it all down isn’t an option and living in a fantasy land where that exists isn’t a solution either


His solution as a "conservative" is to vote DSA out of spite

Thats the gameplan. What an idiot
Posted by Rip Torner
Member since Jul 2023
3632 posts
Posted on 9/16/26 at 2:37 pm to
Sure I am chief, feel free to explain how interest rates, debt, and the bond market aren’t tied together. Then, explain how bonds aren’t sold to pay debt. This should be real good lol
Posted by 3down10
Member since Sep 2014
40339 posts
Posted on 9/16/26 at 2:37 pm to
quote:

You are correct. Unfortunately, burning it all down isn’t an option and living in a fantasy land where that exists isn’t a solution either


Are we pretending it's not already burning?

I'm trying to put the fire out.
Posted by 3down10
Member since Sep 2014
40339 posts
Posted on 9/16/26 at 2:38 pm to
quote:



His solution as a "conservative" is to vote DSA out of spite

Thats the gameplan. What an idiot


If the republicans nominate conservatives I will vote for them.
Posted by Rip Torner
Member since Jul 2023
3632 posts
Posted on 9/16/26 at 2:38 pm to
Getting Democrats elected is pouring nitroglycerin on the fire lol not baking soda
Posted by Fells
Member since Jul 2015
4442 posts
Posted on 9/16/26 at 2:41 pm to
We should all be very thankful that the FED has maintained its integrity in the face of constant assaults by Trump, the fricking idiot who knows absolutely nothing about economics.

The FED is one of the only entities who didnt cave to the absolute nonsense which is great as they are definitely one of the most important.

JP is a national hero. One of the most important stands on integrity in our nation's history.

And the new guy is off to a good start.

I'm just glad Hulk Hogan died so Trump didnt get to make him FED chair
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
100665 posts
Posted on 9/16/26 at 2:41 pm to
quote:

If the republicans nominate conservatives I will vote for them


Conservatives dont exist clown

So your solution is DSA. You are not a conservarive
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
100665 posts
Posted on 9/16/26 at 2:44 pm to
quote:

JP is a national hero


He said inflation was transitory

Leftards strike again
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
60540 posts
Posted on 9/16/26 at 2:46 pm to

quote:

Are you under the impression that new bonds that treasury bonds aren’t issued weekly?


No, but that's not what you mentioned. You mentioned "debt" as if the change in rates would change yields on existing debt.

To your point though, only around 1/4 of the debt is short-term, around 3/4 is the longer term debt. Longer-term securities aren't nearly as impacted by rate changes as short-term ones are (at least when the changes are small and expected, which this one was). Look up "when-issued yields" (WI) if you want more information on it.

Don't get me wrong, moving rates up is going to cause an increase to the debt, but that's not always the primary focus of the Fed as it also focuses on inflation (and that's driven by the amount of money in the economy, so higher rates are meant to pull that down).

The big-picture thing here is that our economy has been running on increasing debt spending by the federal government ever since the GFC. Let me state that again, not just "debt spending" but "increasing debt spending." COVID came along and any semblance of spending restraint was pretty much thrown out the window. We're now at a point where there's no way to avoid economic calamity without pain and the longer we try to delay it, the worse it's going to be.

Let rates remain or even lower them when inflation remains sticky? All that excess deficit spending is going to push inflation higher. Raise rates? The economy slows and we risk recession if the consumer debt bubble pops.

There's no middle ground in this, Powell's much-promised "soft landing" is a myth and math doesn't do "myth".
Posted by 756
Member since Sep 2004
16139 posts
Posted on 9/16/26 at 2:46 pm to
When do they learn inflation is tied to production. Raising rates will slow production and increase inflation
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
100665 posts
Posted on 9/16/26 at 2:47 pm to
Not to mention all the business variable rates are now up which will cause them to raise costs and increase inflation


Posted by CubsFanBudMan
Member since Jul 2008
6297 posts
Posted on 9/16/26 at 2:50 pm to
quote:

Think through the fact that we import tons of things that greatly affect the COGS of damn near everytihg we produce domestically. (including petroleum).



I know that increasing local supply takes a lot longer than decreasing demand, but if the Fed had lowered rates 2 years ago, we potentially could be in a better position and import less things. Just my uneducated thoughts.
Posted by 3down10
Member since Sep 2014
40339 posts
Posted on 9/16/26 at 2:51 pm to
quote:

Getting Democrats elected is pouring nitroglycerin on the fire lol not baking soda


I'm not the one getting democrats elected. If the republican party represented conservatives and conservative values, they'd never lose.

Posted by 3down10
Member since Sep 2014
40339 posts
Posted on 9/16/26 at 2:52 pm to
quote:


Conservatives dont exist clown

So your solution is DSA. You are not a conservarive


I'm starting to come to the conclusion you are allergic to telling the truth.

Posted by Bard
Definitely NOT an admin
Member since Oct 2008
60540 posts
Posted on 9/16/26 at 2:52 pm to
quote:

When do they learn inflation is tied to production.




Inflation is the result of too much money chasing too few goods. Raising rates pulls money from the economy, the eventual drop in production from this is a lagging factor.

In the meantime, surpluses increase as fewer consumers have less marginal cash and that surplus eventually translates to lower prices.
Posted by Fells
Member since Jul 2015
4442 posts
Posted on 9/16/26 at 2:54 pm to
You think the guy upholding traditional American values being optimistic about inflation and not expecting never before seen greedflation is a big gotcha which just shows how little you understand the current state of the world

Posted by stout
Porte du Lafitte
Member since Sep 2006
185515 posts
Posted on 9/16/26 at 2:54 pm to
quote:


Sure I am chief, feel free to explain how interest rates, debt, and the bond market aren’t tied together. Then, explain how bonds aren’t sold to pay debt. This should be real good lol



Chief, again, I will point out that the Fed sets the Fed funds rate. It does not sit around deciding what the 10-year Treasury pays. The government puts the bonds up for sale, and buyers decide what interest rate they’re willing to accept to loan Uncle Sam money for 10 years.

Yes, Fed policy can influence bond rates, but that influence does not always mean bond rates go up when the Fed raises rates. They can actually go down while the Fed is raising rates. Influence and control are not the same thing. That’s the part you keep skipping no matter how much I try to explain it to you.
Posted by Fells
Member since Jul 2015
4442 posts
Posted on 9/16/26 at 2:56 pm to
quote:

If the republican party represented conservatives and conservative values, they'd never lose.


They lost so hard by doing just that that the party was destroyed and hijacked by an absolute moron who has done more damage to America than Bin Laden.
Posted by JimEverett
Member since May 2020
2722 posts
Posted on 9/16/26 at 2:56 pm to
quote:

Can someone explain to me how raising interest rates helps with supply side inflation?


Supply-side inflation can take the case of a temporary shock, in which case raising interest rates do nothing - like when millions of chickens are killed and egg prices jump. Once the chicken population is somewhat restored those prices come down.

Likewise, if you are talking about something more baked into the economy - like energy prices then you should see a spike in inflation but quickly the rise should be baked in so you will not see inflation growth in the future.

Take the tariffs. Suppose in April 2025 Trump had announced a 50% tariff on every import and stuck to it instead of altering tariffs every so often (which doesn't have some huge impact, I just don't want to complicate the point). Sometime that summer or fall or fall of 2025 the inflationary impact of that decision would be built in. Costs may be higher but they would not be rising every month - in other words - there would be no "supply-side inflation" at that point). So the Fed would not even consider raising rates to control supply-side inflation.
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