Rising interest rates.

[RiverRat1]

How will rising interest rates affect you or your business?

Anyone feel this will make the markets tank (like the 2008 taper tantrum)? I don't see a way out. They almost have to raise rates..the only way they don't is if the markets tank. If markets don't tank then it's safe to raise. Either way they raise rates IMO.

In the long run rising rates I'd hope get better and safe returns like money sitting in bank, bonds, CDs etc. That would be nice but have to make it through inflation and rising rates with money left LOL

[Ætheling]

Higher rates can be subjective. I remember getting a 6 percent and thinking I robbed the bank haha. We just closed a month ago and couldnt have timed it better. It needs to correct but I have a feeling when all markets correct its gonna be Carteresque. NOT GOOD!

[TeamAmerica]

We are in commercial real estate. Every 20 bps rise in libor/sofr costs us about $1m more a month in carry costs. All of our long term assets are already refinanced at historically low fixed rates so we will be fine. Our biggest customer is Amazon so guessing they will be fine with higher building budgets, their borrowing rate is dang near lower than treasurys right now. If inflation will come down, it should be a wash for us.

[Shane]

Is the Fed more concerned about what's best in the long term for all of us peasants, or are they more concerned about what's best for the psychopaths that run the government? Their actions will tell the story. Low interest rates and high inflation are good for the psychopaths that are running astronomical amounts of government debt and spending.

[RiverRat1]

Is the Fed more concerned about what's best in the long term for all of us peasants, or are they more concerned about what's best for the psychopaths that run the government? Their actions will tell the story. Low interest rates and high inflation are good for the psychopaths that are running astronomical amounts of government debt and spending.

So your WAG is they don't raise rates?

I'm guessing they raise in March and then one more time this year. So "professionals" are saying they raise 4 times and 7 raises before they stop.

[Shane]

I think they'll raise rates, but not as much as they should. Seven 25bps probably isn't enough. They've done way too much QE, and they've waited way too long to reverse.

Sent from my SM-G998U1 using Tapatalk

[BrianL]

They will raise rates to AT LEAST what they consider rate normalization of Fed Funds rate of 2.5% with inflation in the 2-3% range. My guess is at least 4 raises in 2022, maybe 5 if inflation goes up much past 10%.

[TwoHighways]

Market will puke in response forcing their hand. They’re between a rock and a hard place and when push comes to shove, they’ll ease. It’s what governments and central banks always do and they’ll blame the greedy corporations for gouging consumers. Commodities will continue to be the place to park your money. If it gets as bad as I think is possible, rural real estate is probably your best bet along with having essentials on hand that will help you live a more traditional/less advanced lifestyle.

[Double C]

I think they will jawbone their way thru it. I mean does this admin really want to be the one to do it? Maybe bump a little then halt or maybe even bring it right back down after.

[doghouse]

At my age, retired with money in CD's, I look at higher interest rates as a good deal for me. I made a living paying interest at 6 to 18%. Made a good living on borrowed money.