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Fairyland

Finally...US Federal Reserve raises interest rates to 1%

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US Federal Reserve raises interest rates to 1%

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With at least three more hikes on the cards by the end of the year, today’s news could hit many where it hurts the most – the pocket.”

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Gus Faucher, deputy chief economist at stockbroker PNC, said: “I think the concern, in terms of why the Fed is raising rates now, is that inflation is picking up. The unemployment rate is 4.7% and that’s putting upward pressure on prices.”

But he told the Guardian economic forces were acting against a return to interest rate levels of 4-5% seen before the 2008 crash.

“We have slower labor force growth because of the ageing of the baby boomers, [and thus] slower productivity growth in terms of output per worker,” Faucher said. “That has reduced the potential for long-run growth, it’s reduced inflationary pressures, and I think rates in the future will be lower than they have been in the past.”

 

Edited by Fairyland

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The stock market hasn't flinched. I think this will be a continuing trend of rising stocks, and rising interest rates to (try) keep a lid on it.

I think we could well see interest rates at 5-7% by the last year of Trumps reign.

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....and gold went up $15. It really depends who's at the helm that affects the markets it seems. We have to learn new rules in this new game.

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30 minutes ago, Inoperational Bumblebee said:

Why is the dollar dropping?

sector rotation.that's all.

cash+property+bond markets are sooooo last year.

 

stock market will depend on trump doing what he said he would do and :

1)getting rid of pointless cumbersome regulations

2)fostering a culture of real,organic growth,rather than share buy-backs(that's a bit of an issue at the moment because so many corporations/directorships have used this method of renumeration),the market is very toppy at the moment without some REALLY good numbers.

 

the UK government should be taking a look at this also,and betting on innovation,rather than legislation....it is tempting for them to say raise taxes+cut spending,but in truth it is a death spiral.....they should be selectively CUTTING taxes,MASSIVELY CUTTING legislation and encouraging SME with tax breaks for investing in capital equipment+good apprenticeship schemes.business has to accept they can't get a pool of ready made workers without paying up for the skills required+the ability to think and create something new that would give prospective employer an edge.

 

local government needs to do the same vis a vis business rates....it is far better to have a lower taxation rate that allows shops to function than to have something that cripples the high street and leaves whole parades of commercial premesis derelict...you'll actually get back A LOT more in revenue with lower charges.

 

Edited by oracle

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10 minutes ago, interestrateripoff said:

When do the emerg markets go boom again. How high will they get before the next recession/ financial crisis?

I thought emerging markets are about to start QE?

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