Fed hikes interest rates by three-quarters of a percentage point to battle inflation

cigaretteman

HR King
May 29, 2001
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The Federal Reserve hiked interest rates by three-quarters of a percentage point on Wednesday, as expected, in the latest push to tame inflation, stabilize the economy and ease the pressure on families and businesses nationwide.

The rate increase is the fourth hike this year and matched a similarly aggressive move last month. Inflation has continued to climb, with Russia’s invasion of Ukraine adding pressure to prices and global economic activity, according to a statement released with the Fed’s rate hike decision.


Still, there are signs that parts of the economy are slowing down as the Fed ramps up its policies.
“Recent indicators of spending and production have softened,” the statement read. “Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low."
5 economic forces behind the Fed’s next rate-hike decision
Interest rates are the Fed’s most important tool for combating inflation now at 40-year highs. Higher rates make a range of lending — including mortgages and business loans — more expensive and are designed to cool demand in the economy.

 
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MitchLL

HR Legend
Dec 26, 2018
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The biggest issue going forward , or one of the biggest, will be if the labor market remains strong.

As long as unemployment stays under 4%, should be ok.

I know the people rooting for a recession for political reasons don't want to hear that.
 

BrunoMars420

HR Legend
Feb 14, 2016
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Necessary. But I have a feeling they’re gonna go one hike too many. But whatever recession appears I think will be relatively shallow.
It will be an odd recession for sure. I have a feeling that we may have a nice rally this quarter in the markets, the Bruno #guarantee
 
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NorthernHawkeye

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Dec 23, 2007
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The biggest issue going forward , or one of the biggest, will be if the labor market remains strong.

As long as unemployment stays under 4%, should be ok.

I know the people rooting for a recession for political reasons don't want to hear that.

 

luvmyhawks

HR Legend
Mar 22, 2005
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Necessary. But I have a feeling they’re gonna go one hike too many. But whatever recession appears I think will be relatively shallow.

Fed has a history of waiting to long to react and then being overly aggressive. I suspect that will be the case this time around as well. Markets loved it today. You can fully expect a sell off tomorrow.

With that said, I still remain pretty optimistic about the markets moving forward. The markets have definitely found some footing, which is good.
 

Bill Doak and 9 others

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The Federal Reserve Act mandates that the Federal Reserve conduct monetary policy "so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.”

“...low and stable inflation at the rate of 2 percent per year, as measured by the annual change in the price index for personal consumption expenditures, is most consistent with achievement of both parts of the dual mandate.”

From the Great Depression to the great abomination that is today’s economy, when you think ‘stability’ is the Fed the first thing that comes to mind? 🤣
 
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luvmyhawks

HR Legend
Mar 22, 2005
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The biggest issue going forward , or one of the biggest, will be if the labor market remains strong.

As long as unemployment stays under 4%, should be ok.

I know the people rooting for a recession for political reasons don't want to hear that.

Eh, even if it goes a little over 4% we will still be ok IMO. Now, if we get to 4.5% -5%, we have some problems.
 

onlyTheObvious

HR Heisman
Jan 3, 2021
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Keep eye on mortgage and car loan defaults and personal bankruptcy.

those are the end game results.
 

pepsicock

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May 11, 2006
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5 miles from Willams Brice stadium
Joe Biden Falling GIF by GIPHY News
 
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hwks4ever

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Jan 31, 2007
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Clever...what's this have to do with the thread title?

You're a clown. And the sad part is you were so respected on the football forum and then you went to shit.

Yeah, you were so respected until you chose the wrong "side". Now, of course everyone here hates you. I'm sure you're absolutely devastated 🙄
 

SA_Hawk

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Jan 8, 2022
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Lincoln, NE
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The biggest issue going forward , or one of the biggest, will be if the labor market remains strong.

As long as unemployment stays under 4%, should be ok.

I know the people rooting for a recession for political reasons don't want to hear that.
The labor market isn't strong. Unemployment numbers are misleading because 15 million workers simply left the workforce and didn't return in the last two years.
 

hawkiniowacity

HR All-American
Gold Member
Jun 16, 2002
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The labor market isn't strong. Unemployment numbers are misleading because 15 million workers simply left the workforce and didn't return in the last two years.
15 million?

More like 3.25 million. But whats accuracy when one is teying to push a false narrative

 

luvmyhawks

HR Legend
Mar 22, 2005
20,082
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The labor market isn't strong. Unemployment numbers are misleading because 15 million workers simply left the workforce and didn't return in the last two years.

whoop there it is. Found one hoping our economy sinks for political purposes. Not to mention your number is a flat out lie. Why don’t you go find how many jobs are open and available right now.
 

StormHawk42

HR Legend
Nov 3, 2009
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Love all those in these economic threads that scream out their internet lungs on inflation and then bitch when the Fed acts. Can’t win with some of you.

We’re now at 2-2.5%. Still pretty minor to me. It’ll go higher but now the early forecasts are back to rate cuts in 2023.
 

HawkRCID

HR All-American
Nov 7, 2018
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Those people took early retirement. So of course they didn't return to the workforce.

JFC That's been public info since Covid.

Everyone that wants a job has one.
I truly believe a lot of the issues in the labor force are due to the sudden mass retirements. I know a LOT of people that were planning on 3-5 more years but hung it up early since 2020. Those departures have ripple effects…
 

MitchLL

HR Legend
Dec 26, 2018
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I truly believe a lot of the issues in the labor force are due to the sudden mass retirements. I know a LOT of people that were planning on 3-5 more years but hung it up early since 2020. Those departures have ripple effects…
The post I responded to just proves to me how Radical Right media can do mind control of the sheep.

Savers made lots of $$$ during the Obama years and the Obama carryover into the first two years of Trump.
 

notlongago

HR All-American
Jul 28, 2012
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Clever...what's this have to do with the thread title?

You're a clown. And the sad part is you were so respected on the football forum and then you went to shit.
You say that like "football board cred" is worth anything.