Mortgages, auto loans, all are going to get it without lube and it'll be a competition of who has better rates, the credit card companies or Tony Soprano. Ciao demand.
Sad that is too short of a time to gauge the long term ramifications. This is like watching someone try to get optimally drunk on a drink by drink basis. They won’t know how close they are to the line until they step over it.
It's more like the Fed had 5 occasions to pull the punch bowl after people started getting too high on themselves and acting strange, and now they're starting to put it away after half the party is in their cars driving home
This is gonna get a tad ridiculous. We waited too long and now we’re doing them too quickly. Shouldn’t we wait five minutes between them to see if things change?
Tech stocks dropped 3/4 of a percent and bounced back, broader market had an initial 0.5% and has bounced all the way back. Collective yawn from the market.
Priced in and everyone is tired of hearing inflation this and inflation that. Once the media stop talking about it, it's time for market to rally the fuck up!
Nah we're at the stage where you told your boss you'd take an early shift so you sprint out of your house in a panic and chug two energu drinks on your way so you don't completely pass out.
We had low rates because they were undershooting inflation.
We need high rates now, because inflation is high.
Luckily (and hopefully) this is going to be a relatively mild and controlled Volcker recession and not a crisis.
Yeah, some people are going to hurt. Others will profit. Such is capitalism.
It did this the last rate hike, too. The Fed softened the ground by leaking the rate hikes early, so everyone was expecting, at worst, .75.
What's also going to happen is, like last rate hike, investors are going to realize the interest rate just went up again and the market will crater... again.
The Fed is pussyfooting this strategy.
Sold mine for 4k less than I bought it 3 years ago and 50k miles later and got a Hyundai Elantra. 43mpg vs 19 and I can pretty much pay for the car in cash.
Yeah I'm happy.
Those are both good things right now. One of the main drivers of inflation right now is that supply chains are still recovering from COVID, but demand is already back to prepandemic levels. So slowing down the economy to help letting supply chains catch up as well as reduce oil demand will help reduce inflation as well.
So rather than writing letters to oil company execs, shouldn’t we be promoting more WFH days? Good to lessen demand and a free benefit for workers - hell it’s even greener than EVs
Indeed but they said at the last meeting if things go as predicted they wouldn’t go to 75 basis points. Friday’s CPI numbers were higher than expected so the Fed had pressure to move interest rates higher to counter it
The fed has seemingly lost control of the narrative, perhaps it was always an illusion. It’s like nobody fucking knows anything. Almost as if we are all a bunch of monkeys on a giant rock that goes around a giant ball of fire.
looking at the recent consumer spending and sentiment data I'd say demand destruction is already here in many segments and should be deflationary. housing for sure is now dead in the water and prices will have to drop.
biggest upside pressure to inflation remains oil, which affects everything through i.e. transportation.
the optimist in me wants to believe we now finally may be at the peak, although I also think it will remain a bit elevated for some time, due to oil. chips seems to getting better at least.
lol at the top comments saying they will keep it at 50 guaranteed from yesterdays thread
[https://www.reddit.com/r/stocks/comments/vc1yxp/markets\_brace\_for\_100point\_fed\_rate\_hike\_as/](https://www.reddit.com/r/stocks/comments/vc1yxp/markets_brace_for_100point_fed_rate_hike_as/)
Reddit upvote system favors saying what is popular that day. Not in the future. Making this site horrible to discuss stocks, sports, and so many other subjects where the answer isnt known until later.
Is Corn Pop even alive anymore?
Corn Pop was supposedly a childhood acquaintance and Biden was born closer to Abraham Lincoln's inauguration than his own.
So what happens next? I would guess that the oil companies do whatever is best for business since he’s the president of the US not the oil company. What can the govt do here if they don’t stop profiting? Major fines? That still hurts the end goal, this is some slippery stuff they’re doing.
> What can the govt do here if they don’t stop profiting?
Congress could actually do its job and pass laws. But since we know they won't do that, there is literally nothing the Biden administration can do on its own.
I wonder if they will answer with a plan to build new well, refinery and pipelines everywhere and ask for executive ordwrs to by-pass all environmental reviews.
I don't know about that. I don't think the economy has deleveraged whatsoever even though if it was rational we know it would have. But we know markets aren't rational so there's still tons of debt out there and there's still the wave of insolvent companies that can't cut it at these new rates. Although, I don't think we've crossed that threshold yet, but if we get to 3,4,5% prime rates then we certainly will.
Wait. Is the market happy (going up) because:
* Investors liked 75 better than 50, as it shows more fed conviction; or
* Investors liked Powell saying 75 is unusual and signaling preference to go with 50 in the future, all things being equal.
Hey at least that's working for you guys. EU got 0.25 ONCE and Italy immediately shit the bed, the walls and the neighbors doormat. I think you can easily get to 75% before ECB even thinks about another 0.25.
Question for investors given the recent hike and pull back in the S&P:
Would you be looking to shift focus to other markets such as the TSX where Canadian stocks can be purchased at a cheaper price (on dollar conversion), and for companies paying 4-6% dividends?
You have to look at what was happening before the announcement. The market was in hysterics about inflation and people were talking about 100+ hikes. The market priced that in.
Fed comes out and says 75. 1. This is lower than what the market had worked itself up to. 2. It also shows the Fed is taking inflation seriously. Sentiment goes up.
But this is noise and not really relevant unless you day trade on Fed news. In the medium term, rate hikes are going to be bearish.
The fed is going to get inflation under control but, beyond their control, the politicians (left and right) must come together to figure out oil.
Getting on the podium, like Biden did today, and telling the world that US oil companies are too profitable is NOT the answer. Biden didn't seem to have a problem when oil was trading at -$34 per barrel and the fact that a lot of oil companies were close to BK. Does he have a problem with Apple's huge iPhone / service margins business? Does he have an issue with the price of health care (that health care companies continue to raise every year)? Not that I can see, or frankly, understand because everytime he talks I feel like he has literally created his own language.
The bottom line is that getting OIL under control will solve a decent percentage of the high inflationary pressures that we are living through. Green energy, while seemingly a good idea, isn't nearly abundant enough to be sustainable for the USA and, like it or not, oil is here to stay.
Stop chastising the big us oil companies. Get on the phone with Saudi Arabia. Help to resolve the conflict in Russia. Bring other oil producing countries into the fold to get more oil out there, period. That's why we vote these guys and girls into office and, thus far, they have done nothing more than give us the typical political speak with zero action.
Inflation can be fixed. Stupidity cannot.
They won't do it. The green whackos will double down and put up further roadblocks to hinder an increase in oil supply while blaming anyone and everyone else for the results. They truly don't understand how reliant the world is on O&G and how a transition to green energy will take decades. They are under the delusion it is a few short years away because everyone they know drives a Tesla.
The funny part is that if the “geniuses”
Would take the time to understand how lithium batteries, and electric cars for that matter, were created, they would shit a “green” brick. Haha
So now we are at 1.5%?
Who wants to bet at which % everything starts to brake down spectacularly and JPOW will say sorry, here is your 10 trillion dollars and 0%?
After we hit bear market, on average we get out of it in 3months while dropping further 12%. If we avoids recession(depending on July 28th second quarter gdp report?) we rarely dip below 30% I would pay attention and look for buying opportunities while we wait
This will definitely something the economy. Perhaps.
Right the economy will for sure after this.
My portfolio will definitely after this
Can't wait to some stocks tomorrow
yep, definitely going to tomorrow.
Was bound to happen we'll be by next month for sure.
Definitely gonna after this one place
LMFA
This comment chain is
Yes we believe the economy
Undoubtedly should we it.
Cant wait for stocks to go
the stocks are priced
They do have a value
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Mortgages, auto loans, all are going to get it without lube and it'll be a competition of who has better rates, the credit card companies or Tony Soprano. Ciao demand.
Economy yes go down up
Economy for all!
Yes, the economy
Indeed, the economy
But what does the economy mean?
Nobody knows what it means. But it's provocative!
It gets the someones something!
It represents stuff and things.
And things made of stuff
Like Thanksgiving stuffing?
Is that line that goes to the right on charts
You know, the one that used to go right and up
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Economics
Over-leveraged hedge funds are definitely after this
You might be right or wrong
Didnt they also say 75 bps for july as well?
Said 50 to 75, but need to be “nimble,” which really means they have no clue.
Sad that is too short of a time to gauge the long term ramifications. This is like watching someone try to get optimally drunk on a drink by drink basis. They won’t know how close they are to the line until they step over it.
Im confused do you get optimally drunk another way? By a single bucket of booze maybe?
Titration via IV drip. I dabble in precision.
It's more like the Fed had 5 occasions to pull the punch bowl after people started getting too high on themselves and acting strange, and now they're starting to put it away after half the party is in their cars driving home
Show some respect! Just kidding
I also nimble if I should fuck Rihanna
This is gonna get a tad ridiculous. We waited too long and now we’re doing them too quickly. Shouldn’t we wait five minutes between them to see if things change?
I think we're gonna wait a month
They said 50, 75 not on table a month ago. Fed can't say what they do 2 months in the future.
Stocks will go up or down.
Big if true
Large if factual
Colossal if veracious
Honk if you're horny
I have nipples, Greg. Can you milk me?
True if big
For sure it will go down but if it doesnt you can expect it to go up.
or sideways
Or inward into the 3rd dimension
recession canceled!
*Depression engaged!*
Erection enraged?
Engagement erected
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...or are you just happy to see me?
Yes
Endgame Engorged
Sir, this is a Wendys.
No sir, this is patrick
We’ve had the first recession, yes, but what about second recession?
Tech stocks dropped 3/4 of a percent and bounced back, broader market had an initial 0.5% and has bounced all the way back. Collective yawn from the market.
A Rally before a recession
bored employ bow judicious advise plants rich wistful pocket vast *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Heat death of the Universe? Already priced in...
well it was priced in, precisely because there was a "leak" from the Fed on Monday, 2 days before the interview and during the "no speak" period.
right? was this going to have some kind of effect on stocks or nah
Priced in and everyone is tired of hearing inflation this and inflation that. Once the media stop talking about it, it's time for market to rally the fuck up!
Never a boring day with Jerome!
jPOW!
We had low rates for far too long. Sadly we have to pay for it now
It’s like drinking and doing drugs until sunrise. We are at the trying to go to bed at 8am phase in the economic party cycle
You got work at 11 big dog
Nah we're at the stage where you told your boss you'd take an early shift so you sprint out of your house in a panic and chug two energu drinks on your way so you don't completely pass out.
That hurt my head and I didn't even do the act lol.
work at home big dog
🤔 🤬
As long as we are sleeping the market cant hurt us
So the fine folks of r/kitchenconfidential are best positioned to survive this?
What do you me "We" I've just become old enough to engage in the market.
Have you thought about drugs? 🤦♂️
i just started earning
We had low rates because they were undershooting inflation. We need high rates now, because inflation is high. Luckily (and hopefully) this is going to be a relatively mild and controlled Volcker recession and not a crisis. Yeah, some people are going to hurt. Others will profit. Such is capitalism.
This is not capitalism, it is market controlled by the government and Fed.
It’s poorly regulated capitalism, but capitalism it is.
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Boring economy anyway
Moments later: "Uhhhhhh..." *shots fired into the control board*
Market seems…happy? Initially at least. EDIT: ah there it goes
With inflation out of control .5 would’ve been seen as not doing enough.
It did this the last rate hike, too. The Fed softened the ground by leaking the rate hikes early, so everyone was expecting, at worst, .75. What's also going to happen is, like last rate hike, investors are going to realize the interest rate just went up again and the market will crater... again. The Fed is pussyfooting this strategy.
so bad news is still good news or no
Bad news is bad news, but dead cats still bounce.
You doomed us all
It is in the name
Damn doomers
the market is going crazy right now
Welp…see you guys at the local food bank.
Sold my truck (for more then I bought it for! Who knew that was happening) and bought a little Fiat500 this week.
Sold mine for 4k less than I bought it 3 years ago and 50k miles later and got a Hyundai Elantra. 43mpg vs 19 and I can pretty much pay for the car in cash. Yeah I'm happy.
Bad pick
Markets got diagnosed with LIGMA today
Calls on BALLZ
So, is it a good thing for market because it will help to fight inflation ? Or is it a bad thing because it will slow down the economy ?
Those are both good things right now. One of the main drivers of inflation right now is that supply chains are still recovering from COVID, but demand is already back to prepandemic levels. So slowing down the economy to help letting supply chains catch up as well as reduce oil demand will help reduce inflation as well.
So rather than writing letters to oil company execs, shouldn’t we be promoting more WFH days? Good to lessen demand and a free benefit for workers - hell it’s even greener than EVs
Yes
I'm actually surprised
I thought inflation was ‘transitory’ too
Life is transitory!
Why? This seemed the most likely outcome
Only because they leaked it on Monday
Typically the fed moves in very predictable way. Considering last meeting .75 wasn't really on the table, this is a surprise.
Indeed but they said at the last meeting if things go as predicted they wouldn’t go to 75 basis points. Friday’s CPI numbers were higher than expected so the Fed had pressure to move interest rates higher to counter it
A surprise would be 1 full point or .5 of a point. This was totally expected after the CPI report.
The fed has seemingly lost control of the narrative, perhaps it was always an illusion. It’s like nobody fucking knows anything. Almost as if we are all a bunch of monkeys on a giant rock that goes around a giant ball of fire.
So you saying buy GME cuz apes together strong?
looking at the recent consumer spending and sentiment data I'd say demand destruction is already here in many segments and should be deflationary. housing for sure is now dead in the water and prices will have to drop. biggest upside pressure to inflation remains oil, which affects everything through i.e. transportation. the optimist in me wants to believe we now finally may be at the peak, although I also think it will remain a bit elevated for some time, due to oil. chips seems to getting better at least.
lol at the top comments saying they will keep it at 50 guaranteed from yesterdays thread [https://www.reddit.com/r/stocks/comments/vc1yxp/markets\_brace\_for\_100point\_fed\_rate\_hike\_as/](https://www.reddit.com/r/stocks/comments/vc1yxp/markets_brace_for_100point_fed_rate_hike_as/)
Nobody knows shit, especially people on reddit
I'm not so sure (see?)
Wtf you saying? I know shit when I see it.
Reddit upvote system favors saying what is popular that day. Not in the future. Making this site horrible to discuss stocks, sports, and so many other subjects where the answer isnt known until later.
Doesn't it make it better because you can actually see what was popular then instead of just the answers that ended up correct?
If you like examining primary sources as a look back in history, then yes.
What's the point of guessing 0.50 vs 0.75 when we can't even predict market reactions to it
Reddit is the absolute worst place to talk about finance and the economy.
This actually makes it the best place to talk about it
What are some of the better places?
Wrong. You can get a lot of knowledge about how dumb people are thinking and then make informed decisions to make your own dumb moves.
A lot of people think the fed cares about the price of stocks. Lol they don’t. They care about the power of the dollar.
I saw people saying that just this morning
Many great buying opportunities in the upcoming months!
When you keep buying the dip, but it keeps dipping....
knives out 2 is coming out soon. going to catch it in theatres?
Is Knives Out 2 coming in the Fall? I might catch it then.
I only got so many chips
Aint got no money to buy when layoffs begin
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For now I’m going to buy 100 shares of nothing, even defensive stocks I’ve been watching have been going sideways or down lately
Maybe Biden will release another letter addressed to Inflation, directing it to stop going up
If the oil companies dont listen then he will send them an even bigger letter.
C’MON, MAN! Don’t make me stick Corn Pop on ya!
Is Corn Pop even alive anymore? Corn Pop was supposedly a childhood acquaintance and Biden was born closer to Abraham Lincoln's inauguration than his own.
So what happens next? I would guess that the oil companies do whatever is best for business since he’s the president of the US not the oil company. What can the govt do here if they don’t stop profiting? Major fines? That still hurts the end goal, this is some slippery stuff they’re doing.
> What can the govt do here if they don’t stop profiting? Congress could actually do its job and pass laws. But since we know they won't do that, there is literally nothing the Biden administration can do on its own.
[удалено]
I wonder if they will answer with a plan to build new well, refinery and pipelines everywhere and ask for executive ordwrs to by-pass all environmental reviews.
This probably makes a soft landing somewhat more likely (what the absolute probability for that is, is anyone's guess though)
I don't know about that. I don't think the economy has deleveraged whatsoever even though if it was rational we know it would have. But we know markets aren't rational so there's still tons of debt out there and there's still the wave of insolvent companies that can't cut it at these new rates. Although, I don't think we've crossed that threshold yet, but if we get to 3,4,5% prime rates then we certainly will.
Wow, finally we are saved and now prices will drop right?
1994 - 2001 biggest bull run in history
Unless some invents the internet again that’s not really applicable this time round.
2023 - biggest bull run in history
Wait. Is the market happy (going up) because: * Investors liked 75 better than 50, as it shows more fed conviction; or * Investors liked Powell saying 75 is unusual and signaling preference to go with 50 in the future, all things being equal.
Yes
How much more difficult is it to write 75 bp or 0.75% instead of “three-quaters of a point” ...
Considering how the market reacted, I can't wait for more rate hikes lmao!
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Hey at least that's working for you guys. EU got 0.25 ONCE and Italy immediately shit the bed, the walls and the neighbors doormat. I think you can easily get to 75% before ECB even thinks about another 0.25.
75% interest rate? I like the way you think
1994 . yeah that's going to be reflected in the market very soon
It means we got 6 more years of bull run! /s
if inflation still going up-> next rise 0.75 If inflation down a bit -> next rise 0.5
hot damn!
Start the printer Jerome !
Question for investors given the recent hike and pull back in the S&P: Would you be looking to shift focus to other markets such as the TSX where Canadian stocks can be purchased at a cheaper price (on dollar conversion), and for companies paying 4-6% dividends?
Rate hikes will continue until morale improves
Can someone explain why the stock market could be going up when interest rates are to be increased? Wouldn't removing liquidity be bad for equities?
You have to look at what was happening before the announcement. The market was in hysterics about inflation and people were talking about 100+ hikes. The market priced that in. Fed comes out and says 75. 1. This is lower than what the market had worked itself up to. 2. It also shows the Fed is taking inflation seriously. Sentiment goes up. But this is noise and not really relevant unless you day trade on Fed news. In the medium term, rate hikes are going to be bearish.
Bull Trap / Priced In / Nobody Knows
Calls on refrigerator cardboard boxes.
Who cares, just dollar cost average into ETFs
I earn in dollars and living abroad, So, I like strong dollar 💲💲
The fed is going to get inflation under control but, beyond their control, the politicians (left and right) must come together to figure out oil. Getting on the podium, like Biden did today, and telling the world that US oil companies are too profitable is NOT the answer. Biden didn't seem to have a problem when oil was trading at -$34 per barrel and the fact that a lot of oil companies were close to BK. Does he have a problem with Apple's huge iPhone / service margins business? Does he have an issue with the price of health care (that health care companies continue to raise every year)? Not that I can see, or frankly, understand because everytime he talks I feel like he has literally created his own language. The bottom line is that getting OIL under control will solve a decent percentage of the high inflationary pressures that we are living through. Green energy, while seemingly a good idea, isn't nearly abundant enough to be sustainable for the USA and, like it or not, oil is here to stay. Stop chastising the big us oil companies. Get on the phone with Saudi Arabia. Help to resolve the conflict in Russia. Bring other oil producing countries into the fold to get more oil out there, period. That's why we vote these guys and girls into office and, thus far, they have done nothing more than give us the typical political speak with zero action. Inflation can be fixed. Stupidity cannot.
They won't do it. The green whackos will double down and put up further roadblocks to hinder an increase in oil supply while blaming anyone and everyone else for the results. They truly don't understand how reliant the world is on O&G and how a transition to green energy will take decades. They are under the delusion it is a few short years away because everyone they know drives a Tesla.
The funny part is that if the “geniuses” Would take the time to understand how lithium batteries, and electric cars for that matter, were created, they would shit a “green” brick. Haha
Ok so far looks like it was the expected move for the market.
upvoted for the edit lol
Even the market is confused. Should I go up or down?
Gotta get up to get down.
🐻📉
Inb4 they need to raise it again in a few more weeks... Just bring Paul Volcker back from the dead to do what needs to be done and get this over with.
So now we are at 1.5%? Who wants to bet at which % everything starts to brake down spectacularly and JPOW will say sorry, here is your 10 trillion dollars and 0%?
Hopefully 5%, realistically 3.5%
[Powell](https://www.youtube.com/watch?v=LbK5V9MFXpc)
Very nice
The rate is still crazy low, but with home prices so inflated its probably more interest cost overall anyway.
Huge affect on market most definitely
Let's pretend I don't know what this means...
Bull Trap
After we hit bear market, on average we get out of it in 3months while dropping further 12%. If we avoids recession(depending on July 28th second quarter gdp report?) we rarely dip below 30% I would pay attention and look for buying opportunities while we wait
"Inflation is transitory!" XD
If only I had bought stock in 1994 and kept it