Author Topic: POLL: Fed and interest rates  (Read 5063 times)

JimBowerman

  • Newbie
  • *
  • Posts: 19
    • Split Rock Capital Management, LLC
Re: POLL: Fed and interest rates
« Reply #30 on: January 07, 2019, 08:46:56 AM »
I'm missing the option: "Interest rates should be set by the free market rather than a central bank."

Edit:
While reading all the posts saw rkbabang already made my point.

I'm probably beating a dead horse at this point, but i'd just add that imo, the only way the market can truly set interest rates is if the money supply is also dictated by the market (i.e. private currencies).  I get confused when people start claiming that the fed only started manipulating interest rates post 2008.  The fed dictates the supply of base money, so they are always going to be setting (nominal) interest rates.  The market has never truly set interest rates, and the market certainly didn't dictate interest rates before 2008.  That said, on a personal level, I don't really care whether we have 0% inflation vs 2% inflation.  Real gdp per capita grew about the same in the 1800s (0% inflation) as it did in the 1900s (3% inflation). 


shalab

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1048
Re: POLL: Fed and interest rates
« Reply #31 on: January 11, 2019, 06:38:29 AM »
Looks like there won't be a hike immediately:

https://finance.yahoo.com/news/more-fed-officials-caution-needed-more-rate-hikes-153756790--business.html

Hope so - but looking at comments from others - it looks like the Fed may still raise rates

Cleveland Fed:

https://www.cnbc.com/2019/01/04/feds-mester-says-if-inflation-doesnt-rise-fed-could-stop-hikes.html

"If we don't see inflation picking up and we see the labor market staying reasonably strong from where we are now, that may tell us we're not neutral."


Cramer thinks Fed has outdated models and I tend to agree:

https://www.cnbc.com/2019/01/04/cramer-fed-will-hike-rates-until-there-are-firing-and-layoffs.html

CNBC's Jim Cramer argued Friday that the Federal Reserve's policies are severely outdated, and said the central bank won't stop its rate-hike policy until Americans suffer from "firings and layoffs."

Ah... the guy woke-up!

https://www.cnbc.com/2019/01/04/powell-says-fed-will-be-patient-with-monetary-policy-as-they-watch-how-economy-does.html

Cardboard