Fed Holds Off On Interest Rate Hike, Downgrades Economic Forecast
Source: Los Angeles Times
By Jim Puzzanghera
Federal Reserve policymakers on Wednesday kept the central banks benchmark short-term interest rate near zero, opting against the first increase since 2006 after determining the economy still isnt strong enough to handle it.
Fed officials sharply downgraded their economic forecast for this year. They projected the economy would grow between 1.8% and 2% this year, well below the range of 2.3% to 2.7% in its last forecast in March.
If theyre correct, annual growth would be the worst since 2011 and would be far from the breakout performance some economists had hoped for this year.
In a statement after its two-day policymaking meeting, Fed officials said the economy has been expanding moderately after having improved little during the first quarter.
Read more: http://www.latimes.com/business/la-fi-federal-reserve-interest-rate-20150617-story.html
JDPriestly
(57,936 posts)We need higher tax rates on the highest portion of the money that wealthy people receive. Note. I did not say "earn." We need to tax trades on the stock market to keep stock values realistic and encourage people to invest in things that help our economy and not just stock market scams.
We need to tax the top amount of the incomes of the wealthiest and increase incentives for paying employees more. We could do that through our tax code.
cstanleytech
(26,291 posts)with the way it is now they just end up putting their money in long term investments like stocks which works well for them but not so well for 99% of us in the country.
JDPriestly
(57,936 posts)even in the world economy.
Those stock prices do not indicate a healthy economy. Not at all.
Man from Pickens
(1,713 posts)The Fed has created a situation where it can never ever raise rates without blowing the markets to smithereens and thus revealing that they've been completely wrong from the beginning.
As these types of people can never admit they are wrong, and are even less likely to take responsibility for their own actions, we will never see another rate hike as long as the Fed is controlling rates.
And if we never see that hike, we never get out of this Greater Depression that we are in. All you need to do is substitute the Fed's farcical inflation deflator with something a hair closer to the truth and you can see that we've been in recession or depression continuously since at least 1998 when the tech bubble popped!
With no bigger bubbles possible for them to blow, they're f-ed - and thus so are we.
Bring back Paul Volker and put the jokers who followed him on trial for the mindblowing-scale fraud they've conducted.
JDPriestly
(57,936 posts)Bernie is the only one with a mind clear enough to figure out this scam and to decide what to do about it.
Ironically, in my opinion, the only way to put our free enterprise back on steady tracks is to put a Democratic Socialist in the White house.
Kinda' weird to look at it that way, but I think that is why so many people like Bernie.
We don't want a totally government-run economy. We want an economy in which the benefits don't just go to a very few at the top of the pyramid, and we want an economy in which all of us have opportunities.
The Fed is not even trying to work toward those goals. It may think it is, but it is not.
This stock market is going to crash sooner or later. It is not supported by the real economy of our nation.
Young people go to college, come out, can't get jobs and then decide to train as masseurs and masseuses or something equally nice but . . . . not very solid. No wonder they can't pay student loans off. There are not enough jobs. And the jobs there are don't pay enough to live on.
This is not working.
CountAllVotes
(20,870 posts)No kidding. Bernie Sanders is THE ONE!!
Romeo.lima333
(1,127 posts)Romeo.lima333
(1,127 posts)near zero short term interst rate?
cstanleytech
(26,291 posts)Romeo.lima333
(1,127 posts)Man from Pickens
(1,713 posts)The only thing they are doing on purpose is keeping those rates rock bottom to give the big banks near-unlimited ability to lever positions up to astronomical multiples.
The Fed has completely lost control of the situation.
Demeter
(85,373 posts)The interest rate is what's fueling the stock buy-backs which keeps the stock prices up.
The corporations are being gutted by management, loaded up with debt to buy back the stock, pay off the bonuses, and ship out the growth to China, India, and points between.
PoliticAverse
(26,366 posts)Demeter
(85,373 posts)Didn't they do a stellar job of "jaw-boning" the economy, falsifying the numbers, and making wild predictions?
Too bad it didn't work. The 99% did not go out and buy.
With what would they have bought, you say?
Why, all the money you didn't spend on gasoline for a few months!
abelenkpe
(9,933 posts)That will make it easy to save. O wait....nope.
bucolic_frolic
(43,161 posts)for income inequality, and it doesn't motivate the
JOB CREATORS to do very much except consult their accountants