The fed just raised interest rates by .25%

Jack_Johnson_the_acorn

Crashy_Time wrote: »

Pardon? I don`t disclose my financial details online and in your mind that means I am "scared of everything" :rotfl::rotfl:Keep posting, you have found the perfect online home for yourself in this little sub-sub-troll community......;)

I just need your sort code and account number. :rotfl:

No-one is asking you for personal info....... just trying to see how well you've done using your expert financial planning, you're always eager to tell others how stupid they are but you can't say how well you've done???. Clearly it's been a f*****g disaster.

Crashy the richest man to live in a HMO.

lisyloo

I don`t disclose my financial details online

That's sensible but if you want to debate then we need some evidence of your arguments - that means calculations or published papers from respected sources.
If you are arguing that rent is cheaper then show us the evidence.


I think rent is cheaper for me (short term working) but I can justify by listing the factors that make it cheaper to rent short term e.g. transactional costs and the 45.8% relief I get on my employers salary sacrifice.


You are just insisting on your point of view but put forward no arguments or evidence at all.
Most people think your are wrong so not quite sure why you are here and what you want to achieve as you're not changing anyone's mind here.

worldtraveller

The Federal Reserve is set to raise interest rates this month and is on track to lift them further later this year, Fed Chair Janet Yellen signaled on Friday, evidence the fears that forced the Fed to keep borrowing costs near zero for so many years are firmly on the wane.

"At our meeting later this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate," Yellen said at a business luncheon in Chicago.

Reuters

davomcdave

worldtraveller wrote: »

The Federal Reserve is set to raise interest rates this month and is on track to lift them further later this year, Fed Chair Janet Yellen signaled on Friday, evidence the fears that forced the Fed to keep borrowing costs near zero for so many years are firmly on the wane.

"At our meeting later this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate," Yellen said at a business luncheon in Chicago.

Reuters

FWIW I reckon 75-100bps in rate hikes from the Fed this year.

It'll put the MPC into a tough place. Do they raise rates to defend the pound or let it lose more of its 'overvaluation' :rotfl:?

More seriously the MPC doesn't act in isolation. They can only keep interest rates so far below the Fed and EZ without capital flight becoming a genuine problem unless the Government is going to introduce exchange controls.

westernpromise

On the other hand they can't put rates up too far either or the economy will collapse.

davomcdave

westernpromise wrote: »

On the other hand they can't put rates up too far either or the economy will collapse.

Indeed. So what do you do if you're on the MPC? At what point do you raise rates to protect the pound and thus the importing side of the economy at the expense of mortgagees and other people with floating debt?

Thrugelmir

westernpromise wrote: »

On the other hand they can't put rates up too far either or the economy will collapse.

Only impact those that have opted for a leveraged position. Though the Fed increasing rates will naturally effect wholesale money markets irrespective of any BOE action.

Crashy_Time

westernpromise wrote: »

On the other hand they can't put rates up too far either or the economy will collapse.

Agreed, though it will be over-leveraged bubble buyers that collapse first, then they can stop raising rates and let the economy breathe for a bit. The reality is that the fed are not operating on behalf of overstretched UK home "buyers".

Masomnia

The only reason they haven't and won't (for a few months) bump the Bank rate back up to 0.5% is that it's admitting that they got their forecasts horribly wrong.

michaels

davomcdave wrote: »

Indeed. So what do you do if you're on the MPC? At what point do you raise rates to protect the pound and thus the importing side of the economy at the expense of mortgagees and other people with floating debt?

You follow the same policy as always - rates are not changed for 1 off changes in the price level either up or down (as happens with commodity price or currency changes). You only change rates if you need to take demand out of the economy because excess demand is bidding up prices across the board as evidenced by wage rises in excess of productivity.