Fed hikes discount rate, is it about to start?

[temeculaguy]

[quote=Eugene]What expected march tick up in the fed funds rate? We’re still strongly up against the zero bound. Current market expectations are for the first tick up (to 0.5%) to occur either in September or in November.[/quote]

Good old cnbc, they modified the article from what was originally posted.

Now it says that the guy they interviewed expects the march meeting to result in a raise and initially it said “widely believed.” I didn’t look at the current betting line and apparently after it was posted, the editor did.

[Eugene]

That guy does not seem to be very knowledgeable. He was shocked by the news?

[quote]The Federal Reserve is in the process of normalizing the terms of regular discount window loans. We have reduced the maximum maturity of discount window loans to 28 days, from 90 days, and we will consider whether further reductions in the maximum loan maturity are warranted. Also, before long, we expect to consider a modest increase in the spread between the discount rate and the target federal funds rate. These changes, like the closure of a number of lending facilities earlier this month, should be viewed as further normalization of the Federal Reserve’s lending facilities, in light of the improving conditions in financial markets; they are not expected to lead to tighter financial conditions for households and businesses and should not be interpreted as signaling any change in the outlook for monetary policy, which remains about as it was at the time of the January meeting of the FOMC.[/quote]

Bernanke’s Congress testimony, February 10th. This was headline news a week ago. It was even discussed on sdlookup.

[Eugene]

That guy does not seem to be very knowledgeable. He was shocked by the news?

[quote]The Federal Reserve is in the process of normalizing the terms of regular discount window loans. We have reduced the maximum maturity of discount window loans to 28 days, from 90 days, and we will consider whether further reductions in the maximum loan maturity are warranted. Also, before long, we expect to consider a modest increase in the spread between the discount rate and the target federal funds rate. These changes, like the closure of a number of lending facilities earlier this month, should be viewed as further normalization of the Federal Reserve’s lending facilities, in light of the improving conditions in financial markets; they are not expected to lead to tighter financial conditions for households and businesses and should not be interpreted as signaling any change in the outlook for monetary policy, which remains about as it was at the time of the January meeting of the FOMC.[/quote]

Bernanke’s Congress testimony, February 10th. This was headline news a week ago. It was even discussed on sdlookup.

[Eugene]

That guy does not seem to be very knowledgeable. He was shocked by the news?

[quote]The Federal Reserve is in the process of normalizing the terms of regular discount window loans. We have reduced the maximum maturity of discount window loans to 28 days, from 90 days, and we will consider whether further reductions in the maximum loan maturity are warranted. Also, before long, we expect to consider a modest increase in the spread between the discount rate and the target federal funds rate. These changes, like the closure of a number of lending facilities earlier this month, should be viewed as further normalization of the Federal Reserve’s lending facilities, in light of the improving conditions in financial markets; they are not expected to lead to tighter financial conditions for households and businesses and should not be interpreted as signaling any change in the outlook for monetary policy, which remains about as it was at the time of the January meeting of the FOMC.[/quote]

Bernanke’s Congress testimony, February 10th. This was headline news a week ago. It was even discussed on sdlookup.

[Eugene]

That guy does not seem to be very knowledgeable. He was shocked by the news?

[quote]The Federal Reserve is in the process of normalizing the terms of regular discount window loans. We have reduced the maximum maturity of discount window loans to 28 days, from 90 days, and we will consider whether further reductions in the maximum loan maturity are warranted. Also, before long, we expect to consider a modest increase in the spread between the discount rate and the target federal funds rate. These changes, like the closure of a number of lending facilities earlier this month, should be viewed as further normalization of the Federal Reserve’s lending facilities, in light of the improving conditions in financial markets; they are not expected to lead to tighter financial conditions for households and businesses and should not be interpreted as signaling any change in the outlook for monetary policy, which remains about as it was at the time of the January meeting of the FOMC.[/quote]

Bernanke’s Congress testimony, February 10th. This was headline news a week ago. It was even discussed on sdlookup.

[Eugene]

That guy does not seem to be very knowledgeable. He was shocked by the news?

[quote]The Federal Reserve is in the process of normalizing the terms of regular discount window loans. We have reduced the maximum maturity of discount window loans to 28 days, from 90 days, and we will consider whether further reductions in the maximum loan maturity are warranted. Also, before long, we expect to consider a modest increase in the spread between the discount rate and the target federal funds rate. These changes, like the closure of a number of lending facilities earlier this month, should be viewed as further normalization of the Federal Reserve’s lending facilities, in light of the improving conditions in financial markets; they are not expected to lead to tighter financial conditions for households and businesses and should not be interpreted as signaling any change in the outlook for monetary policy, which remains about as it was at the time of the January meeting of the FOMC.[/quote]

Bernanke’s Congress testimony, February 10th. This was headline news a week ago. It was even discussed on sdlookup.

[peterb]

The U-6 unemployment number has to be near 20% for CA. The stock market is no higher than in 2000, but in less valuable US$. There’s been no recovery.
We’ve essentially experienced our first lost decade since 2000. Commodities have been the best performers in this time period.

I think it’s a fair estimate to say that for every 100 basis point rise in the mortgage rate, the loan amount drops by about 15%. The horizon doesnt seem to have too much good news for the RE market.

[peterb]

The U-6 unemployment number has to be near 20% for CA. The stock market is no higher than in 2000, but in less valuable US$. There’s been no recovery.
We’ve essentially experienced our first lost decade since 2000. Commodities have been the best performers in this time period.

I think it’s a fair estimate to say that for every 100 basis point rise in the mortgage rate, the loan amount drops by about 15%. The horizon doesnt seem to have too much good news for the RE market.

[peterb]

The U-6 unemployment number has to be near 20% for CA. The stock market is no higher than in 2000, but in less valuable US$. There’s been no recovery.
We’ve essentially experienced our first lost decade since 2000. Commodities have been the best performers in this time period.

I think it’s a fair estimate to say that for every 100 basis point rise in the mortgage rate, the loan amount drops by about 15%. The horizon doesnt seem to have too much good news for the RE market.

[peterb]

The U-6 unemployment number has to be near 20% for CA. The stock market is no higher than in 2000, but in less valuable US$. There’s been no recovery.
We’ve essentially experienced our first lost decade since 2000. Commodities have been the best performers in this time period.

I think it’s a fair estimate to say that for every 100 basis point rise in the mortgage rate, the loan amount drops by about 15%. The horizon doesnt seem to have too much good news for the RE market.

[peterb]

The U-6 unemployment number has to be near 20% for CA. The stock market is no higher than in 2000, but in less valuable US$. There’s been no recovery.
We’ve essentially experienced our first lost decade since 2000. Commodities have been the best performers in this time period.

I think it’s a fair estimate to say that for every 100 basis point rise in the mortgage rate, the loan amount drops by about 15%. The horizon doesnt seem to have too much good news for the RE market.

[paramount]

This rate increase was a phony story meant to fool people into thinking the recovery really is happening.

The rate increase was for the emergency window, which is not used these days in any serious way. And it was only for .25%.

[paramount]

This rate increase was a phony story meant to fool people into thinking the recovery really is happening.

The rate increase was for the emergency window, which is not used these days in any serious way. And it was only for .25%.

[paramount]

This rate increase was a phony story meant to fool people into thinking the recovery really is happening.

The rate increase was for the emergency window, which is not used these days in any serious way. And it was only for .25%.

[paramount]

This rate increase was a phony story meant to fool people into thinking the recovery really is happening.

The rate increase was for the emergency window, which is not used these days in any serious way. And it was only for .25%.

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