Jim Boswell Blog | The Fed Did Not Disappoint | TalkMarkets
Executive Director, Quanta Analytics
Contributor's Links: Globanomics
Author of Globanomics. Jim has nearly fifty years of professional experience in the development of management information and analytical business decision support systems. Broadly disciplined with exceptional experience. Education includes an MBA from the Wharton School-University of Pennsylvania, ...more

The Fed Did Not Disappoint

Date: Thursday, July 27, 2023 5:56 AM EST

One thing you can count on is this:  The Federal Reserve of the United States of America will do the opposite of what they should do.

Raising interest rates when "inflation" is declining is stupid, stupid, stupid--causing American households to pay double the amount of interest on their new home loans than they should.  Home loans in the United States should "always" be in the range somewhere between 3% to 4.5%.  At those rates, an investor will not be worse off lending.  Anything above those rates, and the U.S. homeowner is paying some "wealthy nation or individual" a premium for no particular reason.

Today home loan rates i believe are around 7.0%--all because the Fed wants to supposedly stop inflation and give us a "soft landing".

Well, folks, despite what the Fed says, we have already landed and its time to start lowering interest rates again.

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But don't worry.  The U.S. economy will "rebound" (as if it needed to rebound), and the Federal Reserve of the United States of America will take "full credit" for something that Business did without them.

Who ever thought they should put "economists" in charge of the Federal Reserve anyway?

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James B. Paxton 1 year ago Member's comment

I agree.