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Thu Dec 6, 2018, 06:06 PM

Can someone explain to me why there have been so many fed hikes?

Under obama I keep hearing about how great the economy was but their was a sum total of ONE fed hike but under Trump there have been at least FOUR hikes and its only been two years. It almost seems to me (a novice in the stock market) that the volatility in the markets are partly due to these hikes, it almost seems like there is a effort to sabotage the stock market.

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Response to Solesurvivor (Original post)

Thu Dec 6, 2018, 06:21 PM

1. Not really

But it's fun to speculate.

Actually the Obama economy was terrible, worst since WWII. Average GDP growth of 1.6%.

The economy is probably growing about twice that under Trump. Fed's job is to take away the "punch bow"l.

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Response to def_con5 (Reply #1)

Thu Dec 6, 2018, 06:22 PM

2. We all know that (except the left)

I was just wondering if they would finally admit it.

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Response to Solesurvivor (Original post)

Thu Dec 6, 2018, 06:24 PM

3. A pretty simple answer...the Economy never actually grew under Obama

During most of his reign we had QE economy...

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Response to Solesurvivor (Original post)

Thu Dec 6, 2018, 06:24 PM

4. Yep...and another question is when was the last time the fed was audited by an outside agency?

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Response to quad489 (Reply #4)

Thu Dec 6, 2018, 08:02 PM

11. Never.....they've been printing free money and giving it to their friends for over a century.

Who's going to stop them ?

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Response to Solesurvivor (Original post)

Thu Dec 6, 2018, 06:28 PM

5. The Fed is why

we do not have a true market economy. It supposedly uses rate hikes to keep a Bull market from over heating. What usually happens is that it eventually turns a Bull into a Bear market. The Fed should be abolished.

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Response to Solesurvivor (Original post)

Thu Dec 6, 2018, 07:11 PM

6. Because interest rates had been held at almost zero

during the Obama years so they could print money while there was little gdp growth. Since the economy started decent growth interest rates need raising to keep inflation under control and get interest rates back to a more reasonable level.

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Response to GoodKraic (Reply #6)

Thu Dec 6, 2018, 07:48 PM

9. That and the FED needs some tools in it's "fix-it" kit when the next recession(pending, imo)

falls upon us.

The ability to lower rates to zero again is their best tool.

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Response to Solesurvivor (Original post)

Thu Dec 6, 2018, 07:24 PM

7. Fed has dual mandate: unemployment rate and inflation

They use interest rates to grow or restrain the economy.

Right after Obama was elected fed did its final reduction basically to 0. Obama’s economic policy was so crappy the fed only raised twice. Dec 2015 and dec 2016. He had 8 years in office and during NONE of those years did he hit the average 3.0% for a single year, something every other POTUS has accomplished. So Obama is an outlier

These super low rates juiced the stock market and kept the economy sluggishly growing.

This is why I became a Trump supporter. Democratic policies do crap for economic growth. I learned that from Barack Obama.

Under Trump the Fed has raised the rate 6 times. The fed is trying to get back to what they think is a normal rate which is being debated at 3-4%.

The second part of the dual mandate, inflation, becomes an issue when there is growth. In Obama’s crappy economy we didn’t need to worry about inflation.

Gads Obama taught me a lot about what policies can do to hurt growth.

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Response to Solesurvivor (Original post)

Thu Dec 6, 2018, 07:42 PM

8. The reason is

That a friendly Fed dropped interests rates into the basement for Obama. Then Obama and the Fed pumped trillions into the economy to prop it up because they had no economic plan other than stimulus.

That excess liquidity, cheap money has to be sucked out of the system or it can lead to hell on earth in the form of massive inflation and devaluation of the dollar.

Paul Volker had to do this and had interest rates at 18%? This was to compensate for Carter.

Now it would have to be up around 60% to do what Volker did to compensate for Carter to fix what Obama did. Just to let you know, we are fucked! This excess liquidity has to come out of the system. One way or the other!

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Response to Solesurvivor (Original post)

Thu Dec 6, 2018, 07:58 PM

10. The Fed can always sabotage the stock market.

The country was sold to the globalist bankers- Rothshilds-in 1913.

Imo, the stockmarket crash of 1929 was a Marxist effort to cause a collapse of the country in order to bring in Socialism/ Marxism, Communism.

It almost worked....so they might try it again.......now that half of America has been brainwashed into the Marxist ideology.

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Response to Solesurvivor (Original post)

Fri Dec 7, 2018, 07:32 AM

12. Trump had barely been sworn in when the Federal Reserve raised the interest rates

Its obviously an attempt to sabotage the economy

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