Hilsenrath: Rate hikes again enter FOMC discussion


The idea of lowering the unemployment rate threshold for rate hikes to something less than 6.5% "looks like it is going nowhere," says Jon Hilsenrath, leaning hawkish in his summary of the FOMC minutes.

On the one hand waving off news that "few" saw a chance of rate hikes relatively soon as the work of the committee hawks, Hilsenrath nevertheless finds it "striking" the idea of higher short-term interest rates has made its way back into FOMC discussions.

Holding steady for the most part following the minutes release, stocks are taking on some water as the close nears, Dow (DIA -0.3%), S&P 500 (SPY -0.5%), and Nasdaq 100 (QQQ -0.7%).

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Comments (6)
  • labas112
    , contributor
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    they cannot raise interests unless they want to balloon the interest payments on government debt. and at this point, the slightest increase in rates will have an enormous effect on interest for a spiraling out of control US debt.
    19 Feb 2014, 03:29 PM Reply Like
  • Rope a Dope
    , contributor
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    I read an article a few weeks ago that suggested we will be paying $1 trillion a year just in interest to service the National Debt if the rate goes above 4%.

     

    Two words - in sane.
    19 Feb 2014, 03:44 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11355) | Send Message
     
    Yes, let's keep kicking America's elderly, disabled and others on a fixed income in the teeth...let's keep interest rates stapled to the basement floor for another few years.
    19 Feb 2014, 03:47 PM Reply Like
  • labas112
    , contributor
    Comments (531) | Send Message
     
    It's too late for them. They are not going to raise rates just for the elderly. It's a lose/lose situation. If they raise interest rates, then all other assets lose value. Their current holding in treasuries would be severely cut in price from the spike in rates. You would also run into serious deflation. So that home that your grandpa has valued at 200k will lose value.
    19 Feb 2014, 03:57 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11355) | Send Message
     
    But grandpa will be dead from zero income so what does he care what the value of the home that contains his body is?
    19 Feb 2014, 08:59 PM Reply Like
  • Archman Investor
    , contributor
    Comments (3379) | Send Message
     
    This is all talk, talk, talk. The "real" unemployment rate in this country is double digits and they know it. Couple that with 50 million on food stamps and the Fed knows the real game.
    19 Feb 2014, 03:51 PM Reply Like
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