Fed raises rates

[morekaos]

More fuel to the fire....

http://www.cnbc.com/2016/03/04/blackrock-jobs-report-takes-pressure-off-fed.html

Ex-Fed Plosser: Big rate catch up may be needed

"So there may be rate hikes, but maybe one or two of them might be 50 basis points, instead of 25 [basis points]," said Plosser, a monetary hawk who served 8? years as head of the Philadelphia Fed before retiring last March.


"I think the markets need to anticipate that being data dependent means the Fed may have to catch up," Plosser added.

 

[eyephone]

Fed raises rates.
https://www.bloomberg.com/news/arti...es-boosts-outlook-for-borrowing-costs-in-2017

 

[usctrojancpa]

Fed raises rates.
https://www.bloomberg.com/news/arti...es-boosts-outlook-for-borrowing-costs-in-2017

It's no surprise that they raised rates, but the fact that they think that "inflation expectations have grown considerably" has given the stock market a little heartburn at the moment.

 

[morekaos]

Just a pause. Three more coming at least. All good.

 

[morekaos]

Relax everybody police action was inevitable and as it so happens necessary....Yippe kay ye....
https://youtu.be/mklnXM3LIXo

 

[sgip]

Yes, I know 10YR T isn't tied to loans, but an easier indicator than MBS prices....

AM - 10YRT at 2.45, down from 2.48 last night
After FED - 10YRT at 2.56 (1:15 PST)

MBS's which were green prior to Fed move, now -20bps.

All in all about +.375 in rate from AM pricing to PM re-prices for the worse once the dust settles today. (IMHO)

SGIP

 

[irvinebullhousing]

Bring on the higher rate. I WELCOME it......Yikes, don't shoot me.

 

[YellowFever]

.

 

[usctrojancpa]

Yeah I hope Fed raises the rates so mortgage rates go up to 5-6% on a 30year fixed.  That'll bring down the home prices.

Which will also cause a recession which will in turn have rates right back to 0% (when I'll refi into another ARM loan) and housing going back up.  I would be interesting to see what kind of impact mortgage rates going to 5-6% on real estate prices though.

 

[daedalus]

IMO price drops will trail the perception of rising future rates, just as the perception of deflation stymies consumer spending.  So short term, the perception of rising rates will fuel an increase in the willingness to pay, but long term, as rates actually do rise, prices will have to fall.

 

[usctrojancpa]

IMO price drops will trail the perception of rising future rates, just as the perception of deflation stymies consumer spending.  So short term, the perception of rising rates will fuel an increase in the willingness to pay, but long term, as rates actually do rise, prices will have to fall.

Yeah, I can see buyer activity/sales pick up as buyer worry about future rising rates.  I can see it now...."buy now or be priced out forever" will be used again by realtards trying to "encourage and motivate" buyers. 

 

[lnc]

IMO price drops will trail the perception of rising future rates, just as the perception of deflation stymies consumer spending.  So short term, the perception of rising rates will fuel an increase in the willingness to pay, but long term, as rates actually do rise, prices will have to fall.

Yeah, I can see buyer activity/sales pick up as buyer worry about future rising rates.  I can see it now...."buy now or be priced out forever" will be used again by realtards trying to "encourage and motivate" buyers. 

Good call, buyer frenzy did happened in some market. 
http://www.seattletimes.com/busines...spooked-by-rising-interest-rates-rush-to-buy/

 

[eyephone]

https://www.bloomberg.com/news/arti...ting-home-sales-fall-on-higher-mortgage-rates

 

[usctrojancpa]

https://www.bloomberg.com/news/arti...ting-home-sales-fall-on-higher-mortgage-rates

It makes sense that pending home sales falls from Oct to Nov due to seasonality.  The more important thing is that pending sales were UP 1.4 from Nov 2015.  On a related topic, we are getting down to about 300 active listing on MLS (326 as of 1pm tomorrow).  That's around 2 months of resale inventory (even though there some new homes listed on MLS).  There's slim pickings out there right now.

 

[eyephone]

http://www.cnbc.com/2017/03/15/fed-raises-rates-at-march-meeting.html

 

[eyephone]

?Trump says the Federal Reserve has 'gone crazy' by continuing to raise interest rates

"I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy," the president said after walking off Air Force One in Erie, Pennsylvania for a rally.?
https://www.cnbc.com/2018/10/10/trump-says-the-federal-reserve-has-gone-crazy.html

 

[morekaos]

Every president from Carter to Bush to Clinton complained about the Fed raising rates...nothing new there.

 

[morekaos]

To my previous point...

Greenspan to the Fed: 'Put earmuffs on,' Trump's criticism is nothing new for US presidents

Asked if he ever received input from any of the four presidents under whom he served, Greenspan said it happened "all the time."

"You'll find every president has an insight into how the markets work and where interest ought to be, which is always superior to that of the Federal Open Market Committee," he said in an interview on "Squawk Box. "

Greenspan served as chairman from 1987-2006 under Presidents Ronald Reagan, George H.W. Bush, Bill Clinton and George W. Bush.

https://www.cnbc.com/2018/10/18/greenspan-says-that-before-trump-other-presidents-criticized-fed-policy-all-the-time.html

 

[eyephone]

He should keep tabs on his own cabinet members.

 

[zubs]

GREENSPAN missed the credit default swap problem that ran up realestate to astronomical levels.  He left right at the peak in 2006.  If the head of the federal reserve couldn't see the problem back then, I don't believe anybody can.

Everyone is a retard working off of luck and pretending it's skill.


FYI: $1 billion dollar lottery this week!!!..get some.