The move, widely anticipated by financial markets, takes the overnight funds rate to a target range of 0.75 percent to 1 percent and sets the Fed on a likely path of regular hikes ahead. more …
Opinion: If you’re a borrower, you’re going to pay, and if you’re a saver, you’re not going to get paid — such is the nature of interest rate hikes.
The effects from the 2007-9 financial crisis are still being felt. That the crisis was caused by progressive left presidents Carter and Clinton and progressive right president Bush, who saw it as their personal responsibility for every American to own a home whether they could afford it or not, is not the point of this post.
What is the point is that the Fed tried to print its way out of trouble. The QE experiment only created a mountain of debt and artificially sent asset prices higher. The economy didn’t get better, it just seemed better to make Barack Obama look better.
For the first time in history, during the Obama economy we did not have even 1 year of 3% growth.
Now the Fed says it is time to raise interest rates and the very people that need to be helped won’t be.
Small business creates 40% of all employment and with pension plans either under performing or already reducing benefits, savers and retirees are getting very little help.
If President Trump can get Obamacare repealed, continue to reduce job killing regulations, and get both corporate and personal income taxes lowered, the economy will then begin to right itself.