There we have us interest rates folks a 75 basis point rise in interest rates. So as you can see the markets are reacting positively as this was the expected figure. So that dip in prices we saw a few days ago seems to have been the market’s way of pricing this rise in and because jay Powell and his buddies haven’t surprised us all with a 100-bit rise investors seem to be breathing a big sigh of relief.
US interest rates: Now bear in mind that the fed is now on holiday until September. So we won’t see any further rate rises until then bear in mind too though that the fed will keep hiking rates once its officials get back from the beach. Because inflation still needs to be tackled. Now tomorrow’s US GDP figures will also be very interesting to see if q2 saw negative growth then that means a technical recession which could cause the fed to ease up on those future rates.
What The US Interest Rate Hike Could Mean For The Economy.
What does another three-quarter percent rate hike do with the economy? The point is to bring down inflation. We’ve seen the races and we are still seeing inflation. If you look at the housing market it is already starting to work. So every time the fed raises the interest rates it raises the borrowing cost, the mortgage rates, the carbon ring rates, and the credit card rates, they all rise after the fed raises rates. You’ve seen it in the housing market. mortgage applications fell again last month and existing home sales facing again for three months in a row.
We keep seeing the decline in n are buying away from these. it is cooling inflation, but the worries that we can go into a deep freeze. They have a dual mandate to achieve maxim employment and also have stability. Could there be a soft landing to achieve both of the goals? That is the trick then that tight rope with maximum employment is between 3 to 4% unemployment is right there at 3.6% check on that. We are right there. In terms of price stability, were not there at all.
US Interest Rates: Wishing prices come down in some areas but if you listen, raising prices due to the cost that they are accepting and they are passing ts along to consumers. You can see the push and pull. Lower-income people are feeling at the most.
People who are worried about the finances and people who are concerned if we are in a recession are headed towards one, which means they can lose their job. what should people be doing to prepare for this time?
stabilize your job. we are starting to eat that the retail sector has had layoffs. Big take-out buddies tech companies are hanging layoffs. What is the discretion of thing that you think about buying, holding on it? the credit card apr’s are rising every day. so you have to make sure you don’t have any real high credit card debt and get your debts down right now.