Federal Reserve raises key rate by a half-point in bid to tame inflation

cigaretteman

HR King
May 29, 2001
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The Federal Reserve intensified its fight against the worst inflation in 40 years by raising its benchmark short-term interest rate by a half-percentage point Wednesday — its most aggressive move since 2000 — and signaling further large rate hikes to come.

The increase in the Fed's key rate raised it to a range of 0.75% to 1%, the highest point since the pandemic struck two years ago.

The Fed also announced that it will start reducing its huge $9 trillion balance sheet, which consists mainly of Treasury and mortgage bonds. Those holdings more than doubled after the pandemic recession hit as the Fed bought trillions in bonds to try to hold down long-term borrowing rates. Reducing the Fed’s holdings will have the effect of further raising loan costs throughout the economy.

 

Urohawk

HR Heisman
Sep 30, 2001
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Someone at the Fed needs to tell the Dems that inflation has a fiscal policy component that is just as important as monetary policy.
 
Mar 11, 2020
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Seems to me this might be a good time for 46 to actually do the shit he ran on and tax his wealthy buddies.
 

hawkjt

HR Legend
Feb 14, 2004
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Market loved Powell's comments today as he raised rates by .5%
The market feared a .75% increase.
Powell said underlying economy is still strong and cast doubt on recession fears.
Wall St. Journal reported yesterday that the federal deficit as a % of GDP has dropped 15% since 2021.
It is one of the sharpest reduction in modern history and refutes the GOP talking point that Biden spending is responsible for inflation.
 

NCHawk5

HR Heisman
Gold Member
Aug 7, 2019
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Market loved Powell's comments today as he raised rates by .5%
The market feared a .75% increase.
Powell said underlying economy is still strong and cast doubt on recession fears.
Wall St. Journal reported yesterday that the federal deficit as a % of GDP has dropped 15% since 2021.
It is one of the sharpest reduction in modern history and refutes the GOP talking point that Biden spending is responsible for inflation.
Doesn’t refute anything. You’re talking about aggregate data without considering the insanity the pandemic caused in GDP numbers and federal spending. We’re headed towards stagflation, lipstick on a pig isn’t changing that.
 
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seminole97

HR Legend
Jun 14, 2005
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Doesn’t refute anything. You’re talking about aggregate data without considering the insanity the pandemic caused in GDP numbers and federal spending. We’re headed towards stagflation, lipstick on a pig isn’t changing that.
Not headed.
We have arrived.
We had negative real growth because of the absurd inflation figures.

The inflation is the result of the Pelosi-Schumer-Trump-Biden deficits.

BfqNjDd.png
 

NCHawk5

HR Heisman
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Aug 7, 2019
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Not headed.
We have arrived.
We had negative real growth because of the absurd inflation figures.

The inflation is the result of the Pelosi-Schumer-Trump-Biden deficits.

BfqNjDd.png
Not technically a recession yet.
 

hawkjt

HR Legend
Feb 14, 2004
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Not headed.
We have arrived.
We had negative real growth because of the absurd inflation figures.

The inflation is the result of the Pelosi-Schumer-Trump-Biden deficits.

BfqNjDd.png
Thanks for the table.
Simple math indicates that the 4 fiscal year Trump deficits(10/1/17- 9/ 30/21) add up to more than 8.2 trillion.
The one Biden year deficit is 2 trillion.
The last 2 Obama deficits total 1 trillion/ year.
Simple math shows deficits were lower under Obama then spiking under Trump even pre- covid then covid hit and 2/trillion/yr since.
This was bi-partisan spending with covid.
Can we be honest?
Deficits now occur under both parties.
Current inflationary issues (if caused by fiscal stimulus) is the result of years of stimulus.
Of course inflation is created by many factors related to supply as well as demand caused by Black Swan event Covid.
 

Tom Paris

HR Legend
Gold Member
Oct 1, 2001
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Doesn’t refute anything. You’re talking about aggregate data without considering the insanity the pandemic caused in GDP numbers and federal spending. We’re headed towards stagflation, lipstick on a pig isn’t changing that.
It also didn't matter who the president was.
 
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