Drudge Retort: The Other Side of the News
Wednesday, March 15, 2017

The US Federal Reserve has raised its benchmark interest rate by 0.25% for only the third time in a decade. The central bank voted to raise its key rate target to a range of 0.75% to 1%. The Fed had been expected to raise rates after a robust February jobs report, solid pay gains, rising inflation and a dip in the unemployment rate to 4.7%. ... Fed Chair Janet Yellen said the committee judged that a "modest increase" in the rate is appropriate "in light of the economy's solid progress."

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1.2%, solid progress, ha ha, all for the 1%, but for that 1% the benefits are so immense it effects the average for millions.

#1 | Posted by nutcase at 2017-03-15 11:54 PM | Reply | Newsworthy 3

Bankster scum will waste no time in jacking up credit cards 1 - 2 % and lowering savings rates.

#2 | Posted by 726 at 2017-03-16 06:46 AM | Reply

Surely this is a conspiracy to hurt Trump, right?

#3 | Posted by Sycophant at 2017-03-16 09:42 AM | Reply

#3, the Fed has been against workers and any real infrastructure spending. They like and know what they're doing and intend to stay on track, while politicians blather nonsense to distract. Trump is another story altogether.

#4 | Posted by nutcase at 2017-03-16 10:52 AM | Reply | Newsworthy 1

Thank you, President Donald J. Trump, for making interest rates Great Again.

#5 | Posted by GOnoles92 at 2017-03-16 11:34 AM | Reply

"...for making interest rates Great Again." - #5 | Posted by GOnoles92 at 2017-03-16 11:34 AM

What does that mean?

#6 | Posted by Hans at 2017-03-16 11:37 AM | Reply

"...for making interest rates Great Again." - #5 | Posted by GOnoles92 at 2017-03-16 11:34 AM

What does that mean?

#6 | POSTED BY HANS

Consumer confidence in the economy is apparently strong enough now that the Fed feels comfortable raising the interest rate (LONG overdue). I think he's crediting Trump for the economic optimism.

#7 | Posted by JeffJ at 2017-03-16 11:48 AM | Reply

"Consumer confidence in the economy is apparently strong enough now that the Fed feels comfortable raising the interest rate..." - #7 | Posted by JeffJ at 2017-03-16 11:48 AM

That makes as little sense as #5

How is making the cost of money more expensive a good thing?

#8 | Posted by Hans at 2017-03-16 11:52 AM | Reply

Trump may or may not have anything to do with it, but the economy is humming right now.

#9 | Posted by moder8 at 2017-03-16 12:09 PM | Reply

#8 The benefits of higher interest rates are:

1. It keeps inflation in check
2. It strengthens the dollar
3. It provides better yields on bonds

#10 | Posted by rjm53 at 2017-03-16 12:11 PM | Reply

How is making the cost of money more expensive a good thing?

#8 | POSTED BY HANS

Lots of reasons. One in particular: It makes traditional savings vehicles (bonds, savings accounts, etc) more profitable.

#11 | Posted by JeffJ at 2017-03-16 12:14 PM | Reply

Consumer confidence in the economy is apparently strong enough now that the Fed feels comfortable raising the interest rate (LONG overdue). I think he's crediting Trump for the economic optimism.
#7 | POSTED BY JEFFJ

Then he would be mistaken. This is the 3rd increase in the past year and a half. The Obama economy's long term steady growth has far more to do with this than anything Trump has done.

#12 | Posted by johnny_hotsauce at 2017-03-16 12:17 PM | Reply | Newsworthy 1

#7, JJ, the Fed is hell bent on hurting wages and subsidizing rich crooks, especially in finance. Fed and MIC policy are contrary to most of Trump's campaign promises, which no longer apply.

The economy grows slowly but tanks quickly. If consumers, which constitute 70% of our economy, had increased confidence, there would never have been a Trump Presidency. He owes his Presidency to white fears.

#13 | Posted by nutcase at 2017-03-16 12:17 PM | Reply

JeffJ, you're kidding, right?

"Traditional savings vehicles" are not the vehicles of economic growth.

Buying big ticket items (appliances, electronics, cars and real estate), almost always on credit, are such vehicles.

So, again, how is making the cost of money more expensive a good thing?

#14 | Posted by Hans at 2017-03-16 12:35 PM | Reply

"How is making the cost of money more expensive a good thing?"

It also gives the Fed back a bullet for when there is another economic downturn.

QE, which is what was tried after the fed have run out of ways to drop the rate, was useless in revitalizing the economy. All it did was give money to big banks which they put in the stock market. It ran up the market but it didn't do anything for economic growth. It caused the market to become divorced from the economy.

#15 | Posted by jamesgelliott at 2017-03-16 12:45 PM | Reply

A big thanks to OBAMA's shadow government and the "deep state" meddling

#16 | Posted by ChiefTutMoses at 2017-03-16 01:05 PM | Reply

I actually agree with this move. Increasing the rate when times are good gives the Fed room to decrease the rate when times are bad. I'm not an economist but this is basically Econ 101 level stuff.

#17 | Posted by moder8 at 2017-03-16 02:17 PM | Reply

Lots of reasons. One in particular: It makes traditional savings vehicles (bonds, savings accounts, etc) more profitable.

#11 | POSTED BY JEFFJ AT 2017-03-16 12:14 PM | FLAG:

Last interest rate hike, the bank LOWERED the rate they paid on accounts. What banks pay is more a function of the money they need to lend out. Raising interest rates is going to slow demand for loans further.

www.bankrate.com

#18 | Posted by 726 at 2017-03-16 03:07 PM | Reply

It also gives the Fed back a bullet for when there is another economic downturn.

Little d just last week was saying the current situation is a mess. A mess. In a week it's not?

#19 | Posted by 726 at 2017-03-16 03:09 PM | Reply

When rates were lowered, the excuse the Fed used was to increase economic growth and lending. But neither has occurred. Instead cheap money, available mostly to Corporations, has fueled a widespread stock buyback program creating another stock market bubble.

#20 | Posted by bayviking at 2017-03-16 05:44 PM | Reply

"Little d just last week was saying the current situation is a mess. A mess. In a week it's not?" - 726

I prefer to not insult people just because they have a different opinion. I also prefer to look at reality rather than what any politician says regardless of party.

In this improving economic climate, SLOWLY raising rates is the right thing to do.

If the Fed raises rates TOO FAST, it can push the economy into recession; and it will be their fault, not the fault of the president, congress or any other US political entity.

There are things not within the control of anyone in the US, like the OPEC situation that pushed the US economy into a recession in the 1970's.

#21 | Posted by jamesgelliott at 2017-03-16 08:03 PM | Reply

there's some leftys with differing opinions here...okay, THATS GOOD .........but one thing that will happen to bring them back together.

when the market corrects-moves-drops....each one of you will place the blame solely on trump..

and that's a lock-sure thing-good bet-bet the house-prediction based on your history.

#22 | Posted by afkabl2 at 2017-03-17 03:30 PM | Reply

"we'll" be watching.

#23 | Posted by afkabl2 at 2017-03-17 03:32 PM | Reply

"when the market corrects-moves-drops....each one of you will place the blame solely on trump.." - Posted by puke at 2017-03-17 03:30 PM

As usual, "The Buck Stops Here" only works for Democrats.

For Republicans it is always: "The Buck Stops Everywhere But Here."

Not at all surprising.

#24 | Posted by Hans at 2017-03-17 03:41 PM | Reply

The Fed hasn't changed its policy or its projections. Yellen basically raised rates because she had a ‘gut-feeling' that the demand for labor is strengthening which means that wages could rise. (Her feelings on this matter are not supported by the data, but whatever.) As the primary steward of the system, it's Yellen's job to make sure that doesn't happen. Any sign that of improvement in labor markets (like higher wages or, god forbid, rising standards of living) must be squelched before they ever get started. At the same time, the Fed has to balance its anti-worker duties with its stealth mandate to shower the investor class with below market-priced credit to help them game the system and rake off hefty profits. It's a tough job, but the Fed has proved that it's more than ready to meet the challenge. (Mike Whitney)

The Fed chose a policy that they knew would maximize the profits for the investor class at the expense of everyone else.

www.bloomberg.com

#25 | Posted by nutcase at 2017-03-17 05:48 PM | Reply

Left completely unsaid by the usual suspects, except for nut, is WHY rates were soooo low. How quickly you all forget QE1, 2,& 3. Rates hit a 1000 year low, and in fact at the low point, some 17 trillion in sovereign debt had NEGATIVE yields.

Who did that benefit? Jacque Strap said it was a direct benefit to the Fat Cat Banksters, at the expense of American savers. Mom and Pop got pushed by Yellen into securities they never would have dreamed of owning.

How bad did it get?? 100K use to earn $20 a night in interest. Savings accounts hit 0.1% and lower. That's $100 per year, what use to be earned in 5 days.

WHO BENEFITED Hans from ripping off savers? Greedy market investors? Banks? Insurance companies?? Mutual funds? Hedge Funds? I can tell you 1 institutional area that got pounded, Pension Funds!! Also US exporters benefitted from the weaker dollar that collapsed along w US yields.

A common reframe here during the Bush years was Greenspan damaged the economy by keeping rates 'too low'. How quickly the dr left erases history, and their previous comments!!

#26 | Posted by DavetheWave at 2017-03-17 06:31 PM | Reply | Newsworthy 1

Left completely unsaid by the usual suspects, except for nut, is WHY rates were soooo low.

Because the Fed kept dropping them to prop up the stock market until they hit almost zero in 2008.

#27 | Posted by REDIAL at 2017-03-17 07:36 PM | Reply | Newsworthy 1

This is the 3rd increase in the past year and a half. The Obama economy's long term steady growth has far more to do with this than anything Trump has done.
#12 | Posted by johnny_hotsauce

Those numbers reflect the growth in debt. LOL.

fred.stlouisfed.org

#28 | Posted by Ray at 2017-03-17 10:04 PM | Reply

"they" stole all the money... transferred the burden to the middle class ala bailouts... then gave themselves low interest rates to earn hella interest and wiped out middle America in the process... then the ------ wouldn't lend during the zero craze.

FTW

It's a big club... and you and I ain't in it.

#29 | Posted by AuntieSocial at 2017-03-18 03:59 AM | Reply

#26, Dwave, Everything he says is absolutely correct until the last sentence. Classical liberals would never stand for programs designed to enrich wealthy crooks in finance. But this term has many convoluted meanings, deliberately designed by the rich to confuse and who I would add control most economic education. These are the Neo-Liberals, people who think Hayek was on the right track, like the Chicago School of Economics, which imposed murder incorporated on South America.

On the other hand, if you classify Bill Clinton as a "liberal", Dwave would again be right, because no one did more to implement Reagan/Thatcher policy in the USA than Bill Clinton. Bill was not so much a liberal as an amoral opportunist.

Lets be clear here. The Fed is engaged in class warfare, in favor of their rich clients and against workers. They exercise more control over the economy than the President. They are a part of a broader class war that includes things like Taft-Hartley, offshoring manufacturing and BS for academic economic education. Milton Friedman was a conservative Nobel prize winning economist who insisted that mathematical consistency was the core of economics and that there was no requirement that the mathematical assumptions be connected to reality, by say experimental proof.

What's going on is a disaster, highway robbery for a decade which continues unabated. The graphic link quantifies the Feds crimes.

#30 | Posted by nutcase at 2017-03-18 10:00 AM | Reply | Newsworthy 1

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