Thread

Fed hikes rates as inflation worries push up bond yields

184 points · 250 comments · wslh

dabinat · 1789588567 · focus · HN ↗
Prediction: this causes a recession in two years, right after a Democrat wins the White House, who will be blamed for it. The economy will turn around after a few years, just in time for a Republican to win and claim they fixed it.
This is how Republicans have a reputation for being economically savvy despite actual evidence to the contrary, because the general population doesn’t understand that economics runs on a time delay.
1. marcosdumay · 1789589576 · focus · HN ↗
  It's interesting that this article doesn't have the rate...
  (It moved from 3.5% - 3.75% to 3.75% - 4%, the US uses a range, not a fixed number.)
  But this one is something that gets results almost immediately. We will see what it does in 2 or 3 months, not years.
  1. Animats · 1789631670 · focus · HN ↗
    The current official US inflation rate is 3.4%. So the real interest rate is under 1%.
    marcosdumay · 1789661673 · focus · HN ↗
    The most relevant comparison is the short term treasure rates, that is currently at 4% for 3 months.
    What means that the US is still paying banks to take loans. They just fixed it so it pays very, very little.

Unofficial Hacker News client; not affiliated with Y Combinator.