patrick.net

The rate will likely rise .75% this week?

Needs to be 100 but they will go 75. Fed is massively behind the curve. Libs green agenda and China's intentional supply chain bottleneck has/will ruin economy.

Needs to be 250, but they will only do 50. Expecting the federal reserve to do the right thing is just plain silly.

In 2007, everyone said a housing/MBS crash was impossible. It was very low on the expected possible issue list. Then it happened.

In 2020, after many years of the fed failing to achieve their desired inflation rate, and eventually capitulating when they said "maybe the goal is too high, so lets just lower the goal lulz.", people thought rampant multi year inflation was one of the last things that could happen. Then it happened.

The sloth like reaction to inflation smells. It makes me very suspicious that either they either engineered it all, or took advantage of the situation to make inflation worse.

YEEHAH! Power to the savers!

(And no, paying down debt on a ticky tack shack != saving)

https://www.foxbusiness.com/economy/markets-brace-100-point-fed-rate-hike-inflation-roars-new-high

Markets brace for 100-point Fed rate hike as inflation roars to new high

AmericanKulak says

YEEHAH! Power to the savers!

Except nothing pays interest near inflation rate (save for measly $10K in I-bonds).

This fed rate hike is already baked into mortgage rates.

The government giving away free money by the thousands of billions caused inflation.
An economist would say it’s increased availability of money with no increase of output.
Biden and Putin got oil prices up.
Raising interest rates will have no effect on any of the above.

China;s construction boom has turned to bust. China's imports have simply imploded. This has put quite a damper on emerging market economies.

There is about $15 trillion in dollar denominated debt owed by foreign entities. With the expected 3/4 point raise today, that'll mean an extra $225 billion yearly they owe in interest from the beginning of the year.

Much of that debt will not be able to be rolled over. International bankruptcies will become commonplace.

There could be a global depression. That would certainly bring down oil prices.

https://finance.yahoo.com/news/gundlach-says-fed-raise-fed-032359738.html

Gundlach Says Fed Should Raise Rate to 3% on Wednesday

https://finance.yahoo.com/news/fed-fomc-monetary-policy-decision-june-2022-120337242.html

Federal Reserve set to announce interest rate decision at 2 p.m. ET

Too bad we can't do a poll on what they will do. If I had to guess I'm thinking 50 basis points, or less because they consistently do the wrong thing (with the right thing being a higher rate jack).

50 is what they had originally telegraphed. I think there is a good chance it will be 75 due to the continuing bad inflation numbers. They are being tasked with the challenging job of cleaning up the mess that they, Fauci and scarf lady, Trumpy and senile guy, and senile Congress have created.