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Topic: [POLL] Should the Fed stop raising interest rates? - page 2. (Read 222 times)

hero member
Activity: 2660
Merit: 551
Is this the reason why the price suddenly drops again? Although they said that they are going to hold off for now and there are 2 more coming this year.  i'm not based on the US though so I might not be familiar with the subject matter.

And it just interesting though on the effects on the price of crypto and maybe the stock market as well.

So let's see, the price of bitcoin is <$25k as of this writing so yeah, it seems that even it if paused for now, the effects have been felt already.
legendary
Activity: 2156
Merit: 1622
Lowering interest rates will affect in similar scenario to 1970 and 1940 - another, even greater wave of inflation, even harder to stop. So should they rise more? I don't think so because real interest rates (CPI adjusted) are positive and above 1% which is the best in like 15 years starting from last financial crysis. There is no need to rise it higher especially that next month CPI  is expected to go below 3.5% bringing real interest rates to around 2% - best in 25 years.
They should stop and wait for 6-12 months not doing anything.
legendary
Activity: 3808
Merit: 1723
They paused but they said they would raise 2 more times before the end of the year. But the bond markets are saying otherwise. They don’t think they will hike and they are saying the fed will lead the US into a recession but the inverted yield curve is widening again like in March.

It means traders believe that the fed will lead the country into a deep recession and the yield curve will revert where the long dated bonds are priced higher than the short dated bonds. However we need more economic data like the employment numbers to see if this will happen.
copper member
Activity: 2156
Merit: 983
Part of AOBT - English Translator to Indonesia
Either they should be lowering the interest rate or they should keep the interest right now the economy still up and down after what is going on in the world especially in the United States pandemic hit, ongoing war, global supply disrupt, bank collapse, US hit the debt ceiling well I think there is lot other things too.

According to BBC "Raising interest rates helps to control inflation by making it more expensive to borrow money" https://www.bbc.co.uk/news/business-57764601 tho in the current situation I think is not a good idea.
donator
Activity: 4760
Merit: 4323
Leading Crypto Sports Betting & Casino Platform
With the Fed set to make an announcement today on the future of their overnight rate, investors are all watching and waiting to see how the market will react.  What do you think the Fed should do?  Should they continue raising rates until inflation is completely squashed and the job market sees an increase in unemployment to above desired levels? or should they stop raising rates out of fear of sending the economy into a recession and causing another real estate crash?  Maybe you think they should get ahead of a recession and lower rates to keep the economy booming?  What do you think?
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