The FED-Up: Banks Need Profits - More Rate Hikes Soon

[OhNo-Really]

An inflation gauge tracked by the Federal Reserve falls to its lowest point in 2 years

Responding to the latest upcoming rate hikes BS reported here

https://www.democraticunderground.com/100218055291

That is all!

Slowly raising interest rates, which slows spending, is not good policy for a highly employed society.

Is the public being forced to fund bank liquidity ratios!

Capitalism was not designed to be unfettered to the point it periodically destroying the economy!!

Even Eisenhower understood this basic common sense regulation requirement!

[msongs]

1. if u want lower inflation how would u accomplishment it nt

[HariSeldon]

2. Tax the wealthy

Taxes effectively take dollars out of the economy. If that is done without taking productivity out of the economy, then the same productivity (in other words, value) is spread among a smaller number of dollars. Since the wealthy are the least likely to change their behavior based on their income, taxing them minimizes the loss of productivity while still pulling dollars away from the economy to increase the value of each remaining dollar.

[uponit7771]

3. +1, "Taxes effectively take dollars out of the economy" buy back dollars

[OhNo-Really]

5. I believe the Eisenhower tax rates

Built the 1950s highway system.

Allowed moms to be homemakers full-time if they wanted to.

Allowed kids to graduate college without compounded interest therefore lifelong debt

Workers had paid vacations.

Never had any medical bankruptcies.

So no, higher taxes on the highest 10% of earners didn’t deprive sales.

On the contrary!!

[uponit7771]

14. 100% agree, Eisenhower understood capital flowing to horders will hurt the working stiffs

[Volaris]

10. Order the treasury to start shredding 10% of what it collects annually in taxes...

If more money is destroyed than created, inflation drops and the dollar is revalued, right?

I am NOT an economist (but tell me I'm wrong).

[bamagal62]

4. Banks have stopped lending.

I Don’t think that’s a good thing. I think they’re penalizing all banks, when they’re not all a problem.

[OhNo-Really]

6. Debtors are paying higher interests

And houses are selling, cars are being sold, new businesses are opening.

Somehow, it’s quite possible that banks are lending.

And I’m still getting credit card offers.

And student loans are financing students.

Are they still handing out no down, no proof of income housing loans? Probably not.

[bamagal62]

8. Many have chosen not to lend.

I live in in the banking world. A lot of smaller banks aren’t lending. They’re afraid to. So, maybe banks like Chase are lending. But midsize banks are not.

[FBaggins]

7. No they haven't - or rather it's a demand side problem

People have stopped borrowing as much because rates are not as attractive… and there are plenty of commercial customers who can’t borrow because their CRE assets are damaged… but the banks would love to get more of their balance sheets into consumer loans.

But the lower demand is the point of raising rates.

[bamagal62]

9. Banks are looking for deposits.

That’s all they want right now. And, it ain’t happening.

[bamagal62]

11. Smaller banks are getting penalized

For banks like Silicon Valley Bank. They did risky shit and the smaller banks haven’t done that. And now investors are taking advantage of the low stock prices of banks. Honestly, many are sound banks paying the price of the banks that took big risks. It’s wrong. They’re not all bad. But the regulators are saying they’re all bad. It’s not true. Banks are important, especially if they are sound and are serving their communities. I think we need to be careful about throwing them all in the same pot.

[brooklynite]

12. "President Biden Nominates Jerome Powell to Serve as Chair of the Federal Reserve"

Today, President Biden announced his intent to nominate Jerome Powell for a second term as Chair of the Board of Governors of the Federal Reserve System and to nominate Dr. Lael Brainard to serve as Vice Chair of the Board of Governors of the Federal Reserve System.

While our country still faces challenges as we emerge from the pandemic, we have made enormous progress in bringing our economy back to life and getting Americans back to work. Since the President took office, the economy has created over 5.6 million jobs, unemployment has fallen to 4.6% – two years faster than projected – and the pace of our economy’s growth outstrips the rest of the developed world.

That outcome is a testament to the success of the President’s economic agenda, and it is a testament to decisive action by Chair Powell and the Federal Reserve to cushion the impact of the pandemic and get America’s economy back on track. Chair Powell has provided steady leadership during an unprecedently challenging period, including the biggest economic downturn in modern history and attacks on the independence of the Federal Reserve.

During that time, Lael Brainard – one of our country’s leading macroeconomists – has played a key leadership role at the Federal Reserve, working with Powell to help power our country’s robust economic recovery.

Powell and Brainard share the Administration’s focus on ensuring that economic growth broadly benefits all workers. That’s why they oversaw a landmark re-evaluation of the Federal Reserve’s objectives to refocus its mission on the needs of workers of all backgrounds. And they’ve advanced key priorities that the President shares, like addressing the financial risks posed by climate change, and staying ahead of emerging risks to our financial system.

https://www.whitehouse.gov/briefing-room/statements-releases/2021/11/22/president-biden-nominates-jerome-powell-to-serve-as-chair-of-the-federal-reserve-dr-lael-brainard-to-serve-as-vice-chair/

[roamer65]

13. Deposits are leaving bank accounts in the billions right now.

Why?

1 year Treasury notes are paying north of 5 pct, not 0.02 pct like a bank savings account.

Simple math, really.

Even my US Bond fund in the 401k is paying 4 pct right now.

People are moving to these funds for interest income.