The Federal Reserve raised interest rates by a quarter of a percentage point Wednesday, its ninth increase in about a year.

Chairman Jerome Powell addressed the turmoil in the U.S. banking sector, saying the issues were limited to a few banks and emphasized the broader financial system was "sound and resilient."

Officials also see slower economic growth in 2023 than they did a year ago, according to the so-called dot plot.

Highlights from the Fed meeting:

• Fed Lifts Rates by a Quarter-Point
• Central Bank Hints in Statement That the End of Hikes Is Near
• Powell Is Confident in the Banking System
• But Stopped Short of Saying He'd Do Whatever It Takes to Save Depositors
• In the Latest 'Dot Plot, Officials Cut Forecast for Growth
• Follow the Stock Market's Reaction
  

More details in article below.

https://www.barrons.com/livecoverage/fed...eech-today

FED cowered to the banks. Should have done another .50. Inflation will not be affected by another .25. Hasn't begun to get bad yet.

Cowering to the banks would've been zero.
Serious about inflation would've been a half point.

Powell tried to split the difference and it'll end up doing nothing for either.
The markets recognized that and reacted accordingly.

the Biden* shiteshow continues

2008 crash was hell due to my place in life at the time. Bought a house I couldn't really afford at the peak of the bubble in 2007 with 7% interest against my gut judgement, had my first child in January 2009, got laid off a month later, and since I had such little real applicable work experience, was unemployed for 5 months (technically the schit officially hit the fan in Q1 2009) because I had a heck of a time finding a job that could pay the bills! Found a job that was a complete career change and paid less than I was making and didn't really start making decent money until several years later. Had to borrow money over the years just to keep the house livable and had no equity for 10 years. Bottom line is I took everyone's misguided advice and made a big mistake when I was in my mid 20s and naïve and it it is still haunting me to a degree. Only reason I got through it is because the severance package was very generous, but was about a month of unemployment away from walking away from the house and heading toward foreclosure and bankruptcy. Not even sure if that wouldn't have been better in the long run, but the career I landed in requires a security clearance and that may have been a showstopper.

I'm just happy that, unlike 2008, I'm locked into a low rate mortgage I can easily afford and paying mostly principle due to a smart refinance a couple years ago with a 15 year mortgage at 2% taking no cash. And unlike 2008, I'm not upside down so I can get out if I have to. And unlike 2008, I have significant work experience and accomplishments so there isn't much risk of an extended unemployment stint. I'm being recruited by other companies all the time and, frankly, at 43 years old and on the low side of the range salaries for directors at my company, I'm pretty confident I am toward the bottom of the potential layoff list if it came to that. Also unlike 2008, my wife is now staying at home and my youngest is about to start kindergarten so if we need the income, she can go back to work without me job hopping or it having an impact on the family. I'm in pretty good shape to wait this one out for as long as I need to without having to do anything drastic.

I do feel sorry for the younguns and for those trying to retire, but I feel like I'm in good shape to get through whatever is coming.

(03-23-2023 07:55 AM)EverRespect Wrote:  I do feel sorry for the younguns and for those trying to retire, but I feel like I'm in good shape to get through whatever is coming.

Now we just have to hope there actually is something worth hoping for on the other side.

(03-23-2023 07:22 AM)The Sicatoka Wrote:  Cowering to the banks would've been zero.
Serious about inflation would've been a half point.

Powell tried to split the difference and it'll end up doing nothing for either.
The markets recognized that and reacted accordingly.

While this is an accurate statement in current tense, I do believe that the Fed has and continues to overshoot the runway.

There is a lag effect to their decisions which takes anywhere from 6-9 months for there adjustments to fully affect the economy. Because of other circumstances that got us here, that lag may take up to 15 months this time around. That means in 3-5 months the real effects of these increases will hit and probably hit hard.

(03-23-2023 09:04 AM)Eldonabe Wrote:  

(03-23-2023 07:22 AM)The Sicatoka Wrote:  Cowering to the banks would've been zero.
Serious about inflation would've been a half point.

Powell tried to split the difference and it'll end up doing nothing for either.
The markets recognized that and reacted accordingly.

While this is an accurate statement in current tense, I do believe that the Fed has and continues to overshoot the runway.

There is a lag effect to their decisions which takes anywhere from 6-9 months for there adjustments to fully affect the economy. Because of other circumstances that got us here, that lag may take up to 15 months this time around. That means in 3-5 months the real effects of these increases will hit and probably hit hard.

Rates were zero for 15 years and it then went from zero to 5% in 11 months. But the "Inflation Reduction Act" will save us all. We are in deep, deep trouble for years to come.

(03-22-2023 07:30 PM)Eagleaidaholic Wrote:  FED cowered to the banks. Should have done another .50. Inflation will not be affected by another .25. Hasn't begun to get bad yet.

We'll see. If gas stays at $3 through the summer, then food prices should come down.
Diesel is down at the moment which may matter more. If food production costs come down a world of inflationary pressure will be relieved in the last half of the year.

If that doesn't happen, we're screwed another year minimum.