CNBC:
WASHINGTON – The Federal Reserve on Wednesday approved a much-anticipated interest rate hike that takes benchmark borrowing costs to their highest level in more than 22 years.
In a move that financial markets had completely priced in, the central bank’s Federal Open Market Committee raised its funds rate by a quarter percentage point to a target range of 5.25%-5.5%. The midpoint of that target range would be the highest level for the benchmark rate since early 2001.
Markets were watching for signs that the hike could be the last before Fed officials take a break to watch how the previous increases are impacting economic conditions. While policymakers indicated at the June meeting that two rate rises are coming this year, markets have been pricing in a better-than-even chance that there won’t be any more moves this year.
During a news conference, Chairman Jerome Powell said inflation has moderated somewhat since the middle of last year, but hitting the Fed’s 2% target “has a long way to go.” Still, he seemed to leave room to potentially hold rates steady at the Fed’s next meeting in September.
“I would say it’s certainly possible that we will raise funds again at the September meeting if the data warranted,” said Powell. “And I would also say it’s possible that we would choose to hold steady and we’re going to be making careful assessments, as I said, meeting by meeting.” more
NO SYMPATHY!
Rates have Ben WAY TO LOW FOR DECADES.
Just ask anyone over 50 what it was like applying for a bank loan when rotary phones were cutting edge.
Haven’t financed anything since the early 90’s.
Don’t buy anything I can’t pay for with cash.
No longer buy new vehicles.
I let the previous owner take the drive off the lot price hit. Saves me lots of cash.
Think Inflation Is Bad Now? Let’s Take A Step Back To The 1970s and the Jimmy Carter Years…….. Interest Rates were at 20%.
Fresh from Vietnam, wife and two children, unemployed, needed to buy a suit, shoes & tie for a job interview. Couldn’t get a loan of $300, I had no job or collateral.
Had a Large Garden and fished the River for food, scraped paint from apartment buildings for amenities and saved the money to buy a suit. After 6 months, I was employed.
Yeah, those were the good years.
I’m sure it helps the millionaires pay their fair share.
Remember the “No new taxes under $400,000” BS.
Just bleed everybody out in other ways. Interest, gas & groceries.
@cato
Ahhhhhh the good old days………. I remember them well……
Inflation is the biggest tax right now, that no sane person voted for. We’re being strangled.
It’s so nice to know we have the right people in charge.
2% target.
That will become a moving target. They ain’t gonna get it there any time soon. It’s just easier to move it to 4-5% and call it job well done.
Think about this one: There’s no one in government that can override any decision of the federal reserve.
Ignore the folks that told you to get out of debt when interest rates were low. Who’s crying now?
5.5 doesn’t seem very high. They should stop pushing around and go to 8 before years out and 14 and the end of next end this easy money charade.
CATO
Was a CFO when Jimma (for whom I voted) was president.
Clearly part of my job was investing.
When Ronny (for whom I voted 9 times!) won “Jumbo 90 day CD’s were paying 24.5% interest!
Because like Ronny 1 of my sheep skins in an Econ BA – I invested every penny I could round up and went “Whole Hog” on Jumbos!
The next year 1981 – they were down to 9%!
It is a lie Volker killed inflation!
\When Volker came in inflation was 11.8%. -1979
https://cpiinflationcalculator.com/1979-cpi-inflation-united-states/
When Ronny became President 1/81; inflation was 11.8%
https://www.inflation.eu/en/inflation-rates/united-states/historic-inflation/cpi-inflation-united-states-1981.aspx
Bush Republicans lie! In an attempt to discredit Ronny Bush Republicans credit Paul..
Paul clearly did nothing!
Ronny killed inflation; as I knew he would.
For my family when Tony won I took ever ent I had and bought 7 inflation damaged stocks. Every on was up at least 100% by 1983; one was up 400%.
I kicked my self for not having the nuts to buy on margin!
AGAIN BECAUS BUSHIES LIE!
VOLKER ID NOTHOING!
RONNY KILLED INFLATION; while overseeing the greatest American boom in 62 years!
I admit I love America and am very biased!