The fed is raising rates. What are /biz/'s thoughts? How do y'all think Yellen is doing so far? Thoughts on Drahgi and the EBC? Central bank general.
It's been so long since they started talking about raising rates. I remember last fall when it was "imminent." The market has had so long to prepare for it that I can't imagine it'll hurt anything. It's the sign of a healthy growing economy but it's certainly a little scary to see if we're ready or not.
>>1012793
I'm too poor to know what you're talking about, but we'll probably get through it.
>>1012793
It's supposed to be a signal that we are growing our economy if we are raising rates.
Increasing rates reigns in inflation ... yet we are seeing deflation. Housing is slowing, stocks are down, oil is down. Caterpillar hasn't shown an increase in revenue in like 3 years. Baltic-dry index is falling. Employment participation rate for working age males in the US is at an all time low.
I believe they had to raise rates to keep any kind of credibility. They've talked a good economy for a while now, but have never walked the walk and raised rates. I also believe they know it will get worse next year so they are bringing it up just to take it back down and avoid negative interest rates.
I'm just an arm-chair economist. I read a lot of stuff and I own a small business with 40 employees. Take it for what it's worth.
Merry Christmas.
Glad they raised them. The Fed was raping granny for years
>>1012921
Essentially this. The fed is raising rates in order to have some sort of leverage when the next recession comes. Low to moderate growth is occurring but none of it is going back into the pockets of consumers. Any sort of minor financial crisis and they will reverse the trend.
>>1012921
>I also believe they know it will get worse next year so they are bringing it up just to take it back down and avoid negative interest rates.
I listened to a bit of the speech when the rate was raised, and they mentioned specifically this. One of the reasons it's raising is so they can lower it later on, if necessary.
>>1012921
I can tell you are armchair - the US is not currently experiencing deflation. Disinflation is plausible but not likely.
