{"id":33119,"date":"2018-04-04T09:01:02","date_gmt":"2018-04-04T14:01:02","guid":{"rendered":"http:\/\/olduvai.ca\/?p=33119"},"modified":"2018-04-04T09:01:02","modified_gmt":"2018-04-04T14:01:02","slug":"the-risk-of-the-feds-continuous-rate-hikes","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=33119","title":{"rendered":"The Risk of the Fed\u2019s Continuous Rate Hikes"},"content":{"rendered":"
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The Risk of the Fed\u2019s Continuous Rate Hikes<\/a><\/h3>\n

\"jerome<\/p>\n

This past week, the Fed raised interest rates by 0.25%<\/a>. The effective Fed fund rate is now 1.63% \u2013 the highest since the big market crash of 2008.<\/p>\n

However, it could get as high as 3.375% by 2020. The decade 2020 \u2013 2029 could see a high-tech version of the early-1980\u2019s when home loans fetched<\/a> interest rates up to 18%.<\/p>\n

It was only a couple years ago when raising rates seemed like a \u201cboy who cried wolf<\/a>\u201d idea. Now we\u2019re seeing one rate hike after the other, with two more expected for 2018.<\/p>\n

Does the Fed have something up their sleeve, or are they hanging on to false hope?<\/p>\n

The Fed is Either in Denial or Misleading Us About the Economy<\/strong><\/p>\n

While the Fed\u2019s decision to raise rates was predictable, the rest of their announcement wasn\u2019t.<\/p>\n

In the recent FOMC report<\/a> the Fed paints a rosy picture about the state of our economic situation. They stated the outlook has \u201cstrengthened in recent months.\u201d<\/p>\n

Then they claimed a better unemployment rate at 4.1%. And it is, if you\u2019re only reporting the statistics that make things look good.<\/p>\n

We know that rate is misleading<\/a> for one simple fact\u2026<\/p>\n

Anyone who is not looking for work is not considered part of the calculation.<\/em><\/p>\n

As more and more people leave the workforce altogether, and give up looking for work, they get culled from the calculation reported in the media which skews the statistic.<\/p>\n

The truth is, the unemployment rate is much higher than the media reports. It\u2019s actually closer to 8.2%<\/a> as of February 2018.<\/p>\n

So is the Fed in denial about the state of our economy? Is it telling white lies? Or a combination of both?<\/p>\n

 <\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Risk of the Fed\u2019s Continuous Rate Hikes This past week, the Fed raised interest rates by 0.25%. The effective Fed fund rate is now 1.63% \u2013 the highest since the big market crash of 2008. However, it could get as high as 3.375% by 2020. The decade 2020 \u2013 2029 could see a high-tech […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18769,124,303,1849,431,534,3650],"class_list":["post-33119","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-central-banks","tag-fed","tag-financial-markets","tag-interest-rates","tag-monetary-policy","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33119","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33119"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33119\/revisions"}],"predecessor-version":[{"id":33120,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33119\/revisions\/33120"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33119"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}