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Fed's Kashkari says 'now is the time to start slowly moving' rates up
- sco1 2mo ago> Corporate earnings are through the roof. They’re doing great. The consumer is hanging in there. The labor market is hanging in there. Are we though? Thank god corporate profits are ok...
- petcat 2mo ago> "Corporations are people, my friend. Of course they are. Everything corporations earn ultimately goes to people. Where do you think it goes? Whose pockets? Whose pockets? People's pockets. Human beings, my friend." - US Presidential candidate, Mitt Romney, 2011
- jazzypants 2mo agoIt's strange how they agree with that statement until it comes time for legal culpability or personal responsibility of any kind.
- FLeXMurphy 2mo agoMy friend.
- amarcheschi 2mo agoNo they're completely in accord with what they say. You see, if Dupont has a chemical spill who'll suffer the consequences? The people! Human beings /s
- iwontberude 2mo ago[dead]
- pennomi 2mo agoPresumably the concern is that the profits are not fairly distributed among the people in that company - instead corporations are usually a mechanism for wealth accumulation.
- imglorp 2mo agoDon't corporate profits depend on the 99% (the poors) spending? If the consumers fail, and stop spending, how long before the corporations feel mildly inconvenienced?
- tharmas 2mo agoWell, actually they have a new model. I call it the "Apple" model. Low volume sales on high value items where you can charge more. Even NVidia has moved to this model: make your money from selling high-end GPUs for Data Centers and forget the low-profit margin (GeForce) GPUs for gamers/consumers. The whole economy is moving to that model for many things.
- Espressosaurus 2mo agoAuto sales, airline ticket prices (notice the expansion of 1st, business, and comfort class seats), etc.
- BuckRogers 2mo agoApple has low volume sales? You might have picked the wrong company for that example. Nvidia in the consumer market might fit, I would agree there.
- tharmas 2mo ago>Apple has low volume sales? In comparison. Android phones (in total) outsell iPhones because they are cheaper/more affordable. Sure Macs and iPhones may sell more than an individual non Apple brand, but collectively all together, the non-apple brands outsell Apple. But it is certainly true that making high quality products doesn't necessarily mean low sales.
- bryanlarsen 2mo agoApple has 70% of sales share and 80% of usage share in the US. Your comment is true world-wide, but this thread is about the US.
- ToValueFunfetti 2mo agoCould you point to some evidence that we are not? Or at least an anecdote or an opinion on what the issue is or anything at all of substance rather than a provocative question and a bit of snark? What am I supposed to take away from this- I don't even know whether 'we' refers to the consumer or participants in the labor market
- Helloworldboy 2mo ago[dead]
- Molitor5901 2mo agoRates up, rates down, I'm so confused. Too much liquidity supposedly means inflation, too little liquidity means deflation. Would not lower rates mean more consumer spending, thereby injecting more spending and fluidity in the system? I can't help but shake the feeling that the federal reserve is here for the wealthy, the bankers, and not for the rest of us, and anything they do is ultimately not for our benefit, but for theirs.
- deleted 2mo ago[deleted]
- nater5000 2mo ago> Rates up, rates down, I'm so confused. You're making a lot of strong assertions for someone who acknowledges they don't understand pretty basic concepts in macroeconomics. > Would not lower rates mean more consumer spending, thereby injecting more spending and fluidity in the system? If managing the economics of a country was as simple as recognizing a relationship like, "when we move this number up, then things get better," then we'd be living in a utopia. If you want to assert that the Fed isn't helping the average citizen, then go ahead and join the large group of people who have been suggesting this the whole time. But if your basis for such an assertion is that you can't comprehend why a decision like raising or lowering interest rates isn't simple, then do yourself a favor and just step away from even trying to understand what is happening here.
- weakfish 2mo agoThis is just rude, the poster clearly is asking for more information and isn't claiming to be an expert.
- MrDrone 2mo ago> I can't help but shake the feeling that the federal reserve is here for the wealthy, the bankers, and not for the rest of us, and anything they do is ultimately not for our benefit, but for theirs. Because that is what's happening. Our economy is fractured after years of catering to the wealthy at the expense of the working class (anyone who finances their life via their labor.)
- treebeard901 2mo agoYen carry trade unwind, inflation in Japan, hit to the NASDAQ, AI bubble pops, Japanese investors pull money back home and Treasuries lose its largest foreign creditor. Who knows what happens next.
- petcat 2mo agoUS Treasury just bought about $10 billion worth of Yen
- deepsquirrelnet 2mo agoPraise FSM. Without circular investments we'd all be broke.
- _diyar 2mo agoFinally a new type of circular financing to talk about!
- thijson 2mo agoUsing Euro's apparently.
- eigenspace 2mo agoBecause otherwise Japan would have sold Treasuries to plug its financial gaps and defend the Yen, which would have increases US bond yields. Is the US Treasury now on the hook every time Japan feels a bit antsy about its finances?
- Helloworldboy 2mo ago[dead]
- IAmGraydon 2mo agoWhat happens next is that US Treasury yields go to the moon, making previously bought treasuries nearly worthless. Most bank deposits in the US are instantly used to buy treasuries, so severe devaluation of those less-than-mature bonds on the secondary markets means that money held by banks is not really there. Should there be a larger than average number of people making withdrawals, bonds would be dumped on the secondary for pennies on the dollar. Bank runs, complete financial collapse, etc. Enjoy. BTW, this is exactly what happened to Silicon Valley Bank in 2023 on a smaller scale.
- brcmthrowaway 2mo agoI feel the mortgage rates are a bit too high now. Anyone else?
- LazyMans 2mo agoIn comparison to what? Buyers usually want this to be lower. Historically quite low still.
- brcmthrowaway 2mo agoI'm saying renting is way cheaper than buying in most metros
- prewett 2mo agoWhether that is true depends on what kind of place you want to buy and the amount of the loan. In Boston's north shore, the only available apartments are triple-deckers where you can hear your neighbors, for $2500/month, while houses are something like $800k; I consider renting to be a poor value here. In Cambridge, MA rent is higher, an average of $3500/month and you can choose between a commercial apartment and triple-deckers. An actual house is something like $2 million, although if you are okay buying an apartment or the top floors of a triple-decker, maybe you could get one for $1 million. I'm not interested in buying somewhere where I can hear my neighbors talking, so triple-deckers are out. Here rent is a little better deal (except that living in Cambridge is a bad deal). In the far Chicago suburbs (admittedly not "most metros"), on the other hand, rent for a decent apartment is close to the price of a monthly mortgage payment. And if you can pay most of the purchase price (or the price is cheaper), buying looks better, because you have less interest.
- bigtex88 2mo agoIt doesn't matter if the rate is "historically low". The average monthly cost of housing is at the most unaffordable it's ever been.
- all2 2mo agoMy parents bought their house when rates were about 12-14%... "High" is relative.
- arjie 2mo agoIt was a bit of a surprise they didn't already do it. Most people expect rates to go up at the next FOMC. Inflation is moving up, mostly due to the Iran War related oil crisis.