OT: Fear of rising interest rates
- Thread starter demeat
- Start date
Back in the day at AU my professors told me it took 12-18 months for a single rate change to effect the market. I think we had 3 last year alone. Then if we have a recession they will lower again. I wish they would keep the rates super low and allow us to have some strong growth for a little longer then raise them in a slow manner. I feel like sometimes the Fed thinks the economy is better than it actually is. See 2006-2007 leading up to 2008.
The Fed has actually been very slow in raising interest rates, but if they don't at some point we will see too much inflation.
Slow to start, yes, but 3 or 4 rate hikes in a year is not slow.
Since rates were so low people invested in the stock market.
What people will see with each hike is their Home Equity Line Rates go up, credit cards go up, mortgage rates possibly go up. They say since wages are going up it is okay, but really it seems like as just when you start to see things getting better you are limited again due to fed rate hikes. Makes borrowing money to start a business more expensive etc.
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The target rate is still below 2 right? That's pretty slow. Each bump has been minuscule. My dad was building houses in the 80's when interest rates were at 18%, when you consider that the cost of borrowing money has never been this low for this long ever, I think it's fair to consider it a pretty slow increase.
That being said, I sale real estate on the side so I hope it stays this low forever. I just think with this long of a recovery period not raising rates could create another bubble.
I am fine with raising, just not every 3 months. What really drives me nuts I the savers still haven’t seen a bump. It’s not like your savings account is paying you anything. They raise rates for a while and pay nothing.
Bruh, you've got to get with a credit union. I have APCO and my APY is up to 1.26. Obviously that isn't a ton, but it's blows away the .010% interest rate that I have with my Regions savings account (that I just keep a few hundred bucks in in case I need to move money over for some reason).
Damn!! Apco finally moved??? Holy hell! I have Apco. But think about it, we have had 5 rate hikes. APCO finally moved enough to equal one hike.
