The Fed raises rates again

Mar 2012
51,000
33,650
New Hampshire
#2
The markets aren't happy, but it was only .25%. Bunch of snowflakes.

Does anyone know what "liquidity addiction" is?
Think its when the central banks infuse money into the system. We have been living on that since the crash. Now we are addicted to it. Interest rates used to be a positive thing but now seen as a negative. Just shows people have no or little available cash and are relying on loans with increasing interest to survive.
 
Likes: Blueneck
Jan 2016
41,544
37,314
Colorado
#3
What the Fed is doing is bringing about the normalization of monetary policy. That's an important word. From 2008 to 2014, roughly, we were in a very unusual economic environment, where the major economic threat was deflation, the risk of sinking into a deflationary mindset and morass leading to a genuine deflationary spiral a la the 1930s. That kind of economic environment CALLS for ZIRP, zero interest rate policies, and that's exactly what central banks around the developed world were doing.

Central banks were doing exactly the right thing. Grownups were in charge.

But now the deflationary threat is gone, it is time to bring interest rates back into their normal range, and that is exactly what the Fed is doing. Grownups are still in charge.

At least, at the Fed.