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Thread: What is your take on the series of rate increases by the FED so far?

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    Senior Member gimmethesimplelife's Avatar
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    What is your take on the series of rate increases by the FED so far?

    Just as I asked above, what is your take and why? Perhaps I will be given food for thought here. Rob

  2. #2
    Yppej
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    Hasn't done anything to tame inflation. Hasn't raised the interest I get on my bank account.

    Libertarians are saying we should abolish the Fed because its meddling overall hurts our economy. I tend to agree.

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    Senior Member catherine's Avatar
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    It's just a Monopoly game, designed to keep as many of us as possible on the board--whether we have one house on Mediterranean, or several hotels on Boardwalk and Park Place.
    "Do any human beings ever realize life while they live it--every, every minute?" Emily Webb, Our Town
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    Quote Originally Posted by gimmethesimplelife View Post
    Just as I asked above, what is your take and why? Perhaps I will be given food for thought here. Rob
    Reasonable and necessary, but it will take time.

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    Senior Member rosarugosa's Avatar
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    Quote Originally Posted by Yppej View Post
    Hasn't done anything to tame inflation. Hasn't raised the interest I get on my bank account.

    Libertarians are saying we should abolish the Fed because its meddling overall hurts our economy. I tend to agree.
    You might consider changing banks. I've had several interest increases in my Barclays savings account in recent months, currently up to 3%.

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    Senior Member Rogar's Avatar
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    It should have started sooner, but there was pressure on Powell to keep it low. That might have at least eased the pain. The run up in housing costs should have been an early warning sign. But that's past history now. I think it will help with inflation and seems to have worked in the past. It's not going to help with supply chain issues for goods and services and you don't hear much about that. From what I get in the news there's a labor shortage and employers are bidding up wages to attract workers so it's sort of what I imagine as a catch 22 with inflation.

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    Senior Member bae's Avatar
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    I think the current economy is too complicated and interconnected for such a blunt-force instrument to be the ideal tool.

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    It is not going to work very well if the inflation is caused by supply problems which likely play a large part in it. It probably will produce a recession.

    Interest rates in online savings accounts have consistently gone up with every rate change. But no noone is going to get rich with savings accounts and CDs, but that's not new.
    Trees don't grow on money

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    Senior Member Rogar's Avatar
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    I was listening to a WSJ podcast that suggested CD's shopped through a brokerage firm like, say Fidelity, could earn something in the 4-6% range depending on the terms. And that was before the last rate change. It's on my list to look into further, but just haven't got to it yet.

    I doubt that there is just one ideal tool, but it just might work. No one talks about the future cost of US debt and any potential burden that could have on the economy, and that's certainly a negative spin off of spiraling interest rates. My vote would be to increase taxes, but that's not a popular solution.

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