Apart from the US economy being in shambles there is a much bigger global liquidity problem. Raising rates now would've been suicide for the party in charge of DC.
Housing is spiking in guessing it will be raised. I little increase isn't Suicide. It's a no brainer. Sent from my iPhone using Tapatalk
The economy will never fully recover and stabilize as long as the fed keeps holding interest rates down. Sent from my iPhone using Tapatalk
Brad the Fed reserve doesn't care about the citizens...as much as it does sovereigns and corporations...its the same as any business it bends to the demands of the investors and customers. Though I agree with remmett, there are other problems at play. QE, global regulations (for Financial services companies) and the global economy have caused some bigger problems that need to settle before rates rise. Having said that, I'm thinking late 4Q, more likely after Feb 2016 the feed will start to inch rates up, slowly. Painfully slowly.
Does anyone else find it a little disturbing a debate about whether man landed on the moon or not has 46 posts and an important topic like this has 4?
The typical person who is not educated in macroeconomics cannot begin to comprehend the number of factors involved in determining whether interest rates should be increased or not. I'm guessing that's why not many would care to comment on this subject?
The CEO of the bank I work for has publically stated that lay offs may be necessary if rates do not go up soon. So, I guess I would like to see them increased. :-) My job will be safe though. We just got rid of a guy who wasn't pulling his weight and are going to replace him.
I can only assume the Fed is doing what they feel is best for America's economy based on the information which is available to them.
I think a lot of it has to do with the fact that the job market is in much worse condition than they're touting and believe it or not, I think interest rates still haven't hit the bottom. They're leaving a cushion for when the market tanks and the economy has a big adjustment later this year or sometime next year. I'm not saying that's a legitimate reason, but that's what I think they are thinking when deciding not to raise them.
Maybe not disturbing. Expected? Absolutely. My uneducated observation makes me wonder if the uncertainty of if/when rate hikes will occur has an effect in itself on the market.
The country needs to have room to maneuver should something happen. And as long as the rates are held down we won't have that room. Now if they raise them and the economy hiccups than it looks bad for those in power because it means the economy isn't as strong as they claim and their policy isn't working. On the other hand if they raise them and the economy keeps chugging along it shows that all the fear mongering they have been doing to justify not raising the rates was hot air. In the end there will always be something g to point at and say well we do t want to risk it because of this or that. At some point we need to just do it and see what actually happens and quit cowering based on theory. Sent from my iPhone using Tapatalk
I wish that were true, but it's not. For the state the world economy is in, zero is not the bottom. Look up "Less than Zero". Numerous countries have negative interest rates and charge customers for holding their money. Earlier this year I believe it was Switzerland who was at -0.75%. Don't tell me you don't think our government wouldn't pull this kind of crap if they find it "necessary".
I suppose I could web search endless odd things which have occurred in other countries? Europe's central banks experimented with negative rates and it backfired. Then, they turned to a bond-buying program similar to what the U.S. implemented. I suppose anything is possible but I still haven't seen a plausible argument from you on why the Fed would want a below zero Fed Funds rate in the U.S.? The only discussion which has eve been on the table from them is to begin gradually increasing the Fed Funds rate.
CNN has an article about it today. http://money.cnn.com/2015/09/18/inv...ve-interest-rates/index.html?iid=hp-stack-dom
Admittedly this is a topic I need to get educated on. I'm following along. Sent from my iPhone using Tapatalk
