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Inflation sucks bruh: JPow's Jihad


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24 minutes ago, osxmatt said:
107235280-1683156691581-gettyimages-1487
WWW.CNBC.COM

Federal Chair Jerome Powell called for more vigilance in the fight against inflation, warning that additional interest rate increases could be yet to come.

 


Let’s play a game - see if you can spot when JPow said this: 

IMG-8032.jpg 

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22 minutes ago, Commissar SFLUFAN said:

It would be perfectly reasonable for the Fed to hold rates as their current levels as it evaluates inflation data going forward, but outright suggesting a bias towards rate increases is something that I'm pretty sure very few analysts were expecting.

 

What's really annoying is the stuff that's driving inflation won't be fixed by jacking up interest rates. For housing at least it'll absolutely just keep making housing's contribution to inflation worse. 

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7 minutes ago, Jason said:

 

What's really annoying is the stuff that's driving inflation won't be fixed by jacking up interest rates. For housing at least it'll absolutely just keep making housing's contribution to inflation worse. 


That would only be the case if lending increases or continues at its current rate, which isn’t a certainty. 

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22 minutes ago, Chris- said:


That would only be the case if lending increases or continues at its current rate, which isn’t a certainty. 

 

For housing, higher rates cools off bidding wars but kill new housing starts, massively displace would-be buyers into an already super tight rental market, and prevents the market for existing for-sale housing from functioning because people who want to move decide to just stay put to keep their rate. 

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2 minutes ago, Jason said:

 

For housing, higher rates cools off bidding wars but kill new housing starts, massively displace would-be buyers into an already super tight rental market, and prevents the market for existing for-sale housing from functioning because people who want to move decide to just stay put to keep their rate. 


Who is being massively displaced? Would-be buyers are either already in the rental market or already own, there is no displacement there. The impact to housing starts or people sitting on their rates could exacerbate the issue, but both of those are still dependent on lending. 

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23 minutes ago, Chris- said:


Who is being massively displaced? Would-be buyers are either already in the rental market or already own, there is no displacement there. The impact to housing starts or people sitting on their rates could exacerbate the issue, but both of those are still dependent on lending. 

Existing renters on the lower end of the SES being displaced by New entrants into the rental housing market(which historically is linked to the home buying market) when there is no capacity to absorb the new entries—lower and working classes, young people who want to strike out on their own, immigrants, people of color generally. 


Higher rates could be managed better wrt housing if we had more slack in the housing market but we simply don’t have that slack. The new rental market is also affected by rates increasing as the construction is loan financed until completion

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2 hours ago, Commissar SFLUFAN said:

It would be perfectly reasonable for the Fed to hold rates as their current levels as it evaluates inflation data going forward, but outright suggesting a bias towards rate increases is something that I'm pretty sure very few analysts were expecting.

 

Optimal inflation is typically seen as between 2-3%. It’s currently at 3.18% and has declined every month since June 2022.

 

Jerome Powell has no idea what he’s doing.

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24 minutes ago, osxmatt said:

 

Optimal inflation is typically seen as between 2-3%. It’s currently at 3.18% and has declined every month since June 2022.

 

Jerome Powell has no idea what he’s doing.


The US has decreased the inflation rate faster than basically every G20 country. Pretty sure he does.

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  • 4 weeks later...

One more for the jihad expected for this year:

 

WWW.CNBC.COM

The Federal Reserve stayed put on Wednesday, but forecast it will raise interest rates one more time this year.

 

Quote

 

The Federal Reserve stayed put on Wednesday, but forecast it will raise interest rates one more time this year, according to the central bank’s projections released on Wednesday.

 

Projections released in the Fed’s dot-plot showed the central bank would hike rate to 5.6% by the end of 2023. Then it projected two rate cuts in 2024, which is two fewer than its forecast in June. That would put the funds rate around 5.1%.

 

 

  • Guillotine 1
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3 hours ago, Commissar SFLUFAN said:

One more for the jihad expected for this year:

 

WWW.CNBC.COM

The Federal Reserve stayed put on Wednesday, but forecast it will raise interest rates one more time this year.

 

 

Waiting to see if higher oil and a government shutdown do the job for them. 

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  • 3 weeks later...

The Federal Reserve is never going to lower interest rates ever again.

 

WWW.CNBC.COM

Nonfarm payrolls were expected to increase by 170,000 in September, according to the Dow Jones consensus estimate.

 

Quote

 

Job growth was stronger than expected in September, a sign that the U.S. economy is hanging tough despite higher interest rates, labor strife and dysfunction in Washington.

 

Nonfarm payrolls increased by 336,000 for the month, better than the Dow Jones consensus estimate for 170,000 and more than 100,000 higher than the previous month, the Labor Department said Friday in a much-anticipated report. The unemployment rate was 3.8%, compared to the forecast for 3.7%.

 

Stock market futures turned sharply negative following the report and Treasury yields jumped. Stocks opened lower, with the Dow Jones Industrial Average down close to 150 points in early trading. The 10-year Treasury yield soared 0.11 percentage point to 4.83%, up around its highest levels since the early days of the financial crisis.

 

The payrolls increase was the best monthly number since January.

 

“Slowdown? What slowdown? The U.S. labor market continues to exhibit amazing strength, with the number of new jobs created last month nearly twice as large as expected,” said George Mateyo, chief investment officer at Key Private Bank.

 

Investors have been on edge lately that a resilient economy could force the Federal Reserve to keep interest rates high and perhaps even hike more as inflation remains elevated.

 

Wage increases, however, were softer than expected, with average hourly earnings up 0.2% for the month and 4.2% from a year ago, compared to respective estimates for 0.3% and 4.3%.

 

 

  • Guillotine 2
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1 hour ago, Commissar SFLUFAN said:

The Federal Reserve is never going to lower interest rates ever again.

 

WWW.CNBC.COM

Nonfarm payrolls were expected to increase by 170,000 in September, according to the Dow Jones consensus estimate.

 

 

Another rate hike in November and bond yields going crazy. 

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34 minutes ago, TUFKAK said:

Laughs in homeowner 

 

seriously though how is anyone expected to buy anything now 

 

Yeah I am at the point in my life where I will hopefully never have to take on debt again but with current costs of homes/Cars combined with the relatively high interest rates anyone starting out is completely fucked for the foreseeable future 

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38 minutes ago, elbobo said:

 

Yeah I am at the point in my life where I will hopefully never have to take on debt again but with current costs of homes/Cars combined with the relatively high interest rates anyone starting out is completely fucked for the foreseeable future 

Outside of one car to replace my Giulia in the future I’m done, except maybe one house abroad, I have absolutely no clue how anyone can get ahead with these rates. My mortgage would be unaffordable with current rates for instance and I make well into the six figures.

 

The American dream everyone.

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7 minutes ago, ThreePi said:

Put more money in online high yield savings accounts and then put a much bigger down payment on any home/auto loan.

 

Housing appreciation is going to wildly outstrip HYSA yields unless we start building significantly more housing, and new housing starts are majorly depressed by high interest rates.

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42 minutes ago, CitizenVectron said:

It's almost like the solution to the housing crisis is just to build millions of more homes all over the place. Yes, money and rates are a part of that...but the bigger issue are zoning laws preventing mass development. 

But how is private equity supposed to make money that way?

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12 minutes ago, GeneticBlueprint said:

 

The house next to me listed for 625k. It sold for 500k a week ago. That's not driving them down but that's how much I bought my house for a year and a half ago.

But with rates now that mortgage is probably higher than two years ago.

  • True 1
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