Should the Fed Raise Rates? How Much?

What Would Jesus Do? · 2026-09-16T08:44:07-0500

It's pretty much locked in, but is it the right move?

I say "no" because I don't see how a rate increase fixes the actual problems we face. It won't stop the war. It won't make gas cheaper. Etc., etc.

What do you think?

firegiver · 2026-09-16T08:46:36-0500

What Would Jesus Do? said:
It's pretty much locked in, but is it the right move?

I say "no" because I don't see how a rate increase fixes the actual problems we face. It won't stop the war. It won't make gas cheaper. Etc., etc.

What do you think?

With the executive branch completely out of control, they may have 0 choice. Inflation must be curbed at all costs because of the astronomical debt the government has

coldbud1994 · 2026-09-16T08:53:03-0500

25 basis points today and 25 in December

Knickslions69 · 2026-09-16T08:56:53-0500

What Would Jesus Do? said:
It's pretty much locked in, but is it the right move?

I say "no" because I don't see how a rate increase fixes the actual problems we face. It won't stop the war. It won't make gas cheaper. Etc., etc.

What do you think?

You obviously don’t understand why they would raise rates. While everyone wants rates to come down unfortunately that’s not option in this current economy

What Would Jesus Do? · 2026-09-16T09:15:43-0500

Knickslions69 said:
You obviously don’t understand why they would raise rates. While everyone wants rates to come down unfortunately that’s not option in this current economy

If you understood, you'd explain instead of being a jerk.

Knickslions69 · 2026-09-16T09:19:15-0500

What Would Jesus Do? said:
If you understood, you'd explain instead of being a jerk.

I’m not being jerk. You started the thread and don’t understand what you are posting.

Rifler · 2026-09-16T10:44:38-0500

The fed is faced with a plumbing problem and their only tool is a hammer,... They will likely do some light tapping.

dgordo · 2026-09-16T10:47:39-0500

IMO the fed is not raising rates because of inflation but because they need to keep us debt attractive to foreign buyers.

What Would Jesus Do? · 2026-09-16T10:58:21-0500

Knickslions69 said:
I’m not being jerk. You started the thread and don’t understand what you are posting.

Explain why you think so. I bet you can't.

I can explain my position, if anyone is interested.

What Would Jesus Do? · 2026-09-16T10:59:19-0500

dgordo said:
IMO the fed is not raising rates because of inflation but because they need to keep us debt attractive to foreign buyers.

That's a factor but aren't the bond markets already handling that?

What Would Jesus Do? · 2026-09-16T11:02:22-0500

Rifler said:
The fed is faced with a plumbing problem and their only tool is a hammer,... They will likely do some light tapping.

I agree. Inflation is a serious problem but raising rates is a crude way to address that. Sadly, our President is making things worse, and our Congress first enabled Trump and now is impotent. So the Fed will use this blunt instrument of last resort.

What Would Jesus Do? · 2026-09-16T11:12:30-0500

The hottest part of our economy is AI/Data Centers. Will a tiny rate increase slow that?

Outside of AI, our economy might have been considered "overheated" prior to the war, but that's no longer true. It's still considered resilient and growth is poking along, but take away the AI boom and the picture is less encourabing.

Of course if you take away the AI boom, a lot of consumer electronics (especially those needing sophisticated chips, memory and batteries) would be more affordable.

Gemini says a rate increase will not cool the AI boom.

What Would Jesus Do? · 2026-09-16T11:15:09-0500

Demand is already slowing, thanks to price increases driven by energy costs (thank Trump's wars) and AI vacuuming up high-value electronics.

Rate increases are generally said to reduce demand, but do we really want to slow demand more?

dgordo · 2026-09-16T11:16:14-0500

What Would Jesus Do? said:
That's a factor but aren't the bond markets already handling that?

the bond market is being manipulated by other parts of the government that want lower rates.

What Would Jesus Do? · 2026-09-16T12:21:01-0500

dgordo said:
the bond market is being manipulated by other parts of the government that want lower rates.

Can you elaborate on that?

baltimorened · 2026-09-16T13:48:40-0500

What Would Jesus Do? said:
The hottest part of our economy is AI/Data Centers. Will a tiny rate increase slow that?

Outside of AI, our economy might have been considered "overheated" prior to the war, but that's no longer true. It's still considered resilient and growth is poking along, but take away the AI boom and the picture is less encourabing.

Of course if you take away the AI boom, a lot of consumer electronics (especially those needing sophisticated chips, memory and batteries) would be more affordable.

Gemini says a rate increase will not cool the AI boom.

some economic experts on the finance talk shows say the same thing

Palmerhawk · 2026-09-16T14:26:22-0500

Warsh sounds like his usual hawkish self, implying multiple hikes are likely.

.25 today
More in December?

baltimorened · 2026-09-16T14:43:42-0500

baltimorened said:
some economic experts on the finance talk shows say the same thing

dgordo · 2026-09-16T15:43:00-0500

What Would Jesus Do? said:
Can you elaborate on that?

currency swaps, buying debt, threats and promises.

Should the Fed Raise Rates? How Much?

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