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US interest rates raised for first time in three years
- deleted 9d ago[deleted]
- qalmakka 9d agoThis is basically self inflicted, as usual messing up in the Middle East always ends up with consumer paying the price for their ruler's stupidity "Oh no, my drinking water tastes like crap after I pooped in the well"
- chii 9d agoExcept the person doing the pooping doesn't drink from the same well as he's got his own private reserve supply.
- ragebol 9d agoYou mean he has his own private supply of poop that is involuntarily tapped into at any random moment?
- 21asdffdsa12 9d agoOh, in the end, when the hoovervill goes marching- they do..
- pkthunder 9d agoMore like the people drinking the water are being told about the eventual pooping, ask for it anyway, then drink with a scowl.
- anovikov 9d agoBut unlike in the old days, US wins from higher prices. Even consumers wins (because they make more money on average, and their imported goods are cheaper because balance of payments shifts in US favour because of oil exports). Voters are furious because of psychological factor of gas prices (purely psychological, it has nothing to do with economy or people's purchasing power). It bites politician's asses real hard. So, Trump undermined himself by launching that war - but others are fine.
- cgio 9d agoDo they make more money on average? Does any additional income cover the increase in cost of living? Becoming psychologically poor is much harder than becoming psychologically rich. I doubt that balance of payments goes anywhere near your average Joe’s pocket.
- anovikov 9d agoIt absolutely does because balance of payments = exchange rate, and average Joe is poor and consumes disproportional part of imported goods vs the rich.
- pjc50 9d agoImported goods which have been made more expensive by tariffs?
- athrowaway3z 9d agoThis is just wrong. The overwhelming amount of expenses is for domestic products; lumber, food, services, rent, etc. Cheaper foreign shit isn't going to be meaningfully felt by the majority. The part where the rich come in, is that the rich will disproportionally feel the upside of selling the fuel. The people on below average wage are just going to see prices rise and meager savings dilute, long before their wages grow. Thats not to say the US isn't going to be well of as history's largest energy producer ever, but the reshuffling is going to be extremely painful for a majority of Americans.
- anovikov 9d agoI mean, it's rather absurd to claim that "a net exporter country loses out because of increase in price of the commodity in question".
- cgio 8d agoThe country not in total, individuals though could overwhelmingly lose.
- outside1234 9d agoWe can’t afford healthcare because they revoked the subsidies but at least we now also can’t afford gasoline too!
- throwaway473825 9d agoWhile this isn't the best way to address the issue, the US is way too dependent on gasoline/diesel for transportation. It's not sustainable.
- Retric 9d agoBeing unsustainable isn’t the same as breaking within the lifetime of the people making the decisions. The average US senator is 66, and that’s young compared to the current Supreme Court or the sitting President.
- themaninthedark 9d agoMaybe Trump is secretly for "the green agenda" and this was all part of the plan to stop oil. He had that big falling out with Elon so that he can't be accused of pandering to him when electric car sales go through the roof. I have also heard that this is really "big oil's" plan, they always manage to cause a huge price spike just when green energy is about to take over the market, somehow this stops the green revolution and forces everyone to go back to using fossil fuels.
- Arodex 9d agoHaven't you heard that thanks to Trump and the Republicans, the start-stop engines are now banned and gas stoves are back? Have you heard the cries of joy every time this has been mentioned in Republican rallies?
- jjav 9d ago> We can’t afford healthcare because they revoked the subsidies but at least we now also can’t afford gasoline too! But we can easily affort 500+ million per day for faraway foreign wars! That, no problem.
- 21asdffdsa12 9d agoEh, how is this self-inflicted, when you have a radical has-been-empire blocking a global arteries by waging relentless proxy wars. Stop it with the "only white people can be actors on the global stage"-ism, the us basically clashes with Iran once every president (directly or indirectly) - and not by choice.
- iSnow 9d agoIran is a pain in the ass, but the latest round of escalation was started by Israel and the USA.
- bertrayde 9d agoWell, you can play “who started it” to no end, but technically direct country-to-country assault started with Iran’s missile barrage on Israel. Now of-course this was preceded by the killing of IRGC members in Syria (and some by beeper casualties in Lebanon), but they were there handling Hezbollah attacks on Israel.
- ParentiSoundSys 9d agoAre you referring to the start of the 12 Day War here? If so, are you leaving out Israel's unprovoked airstrikes on Iran out of ignorance or dishonesty?
- Reubachi 9d agoThis is a pointless slipperly slope. Eventually one of you will get to "well ISraelites where there first" That's for reddit not HN
- m4rtink 9d agoI would argue the October 7 massacre perpetrated by Iran backed proxies started this round.
- pixelesque 9d agoIt was blatantly obvious Iran would do that if attacked. This has been known for decades. The only thing previously stopping them holding the strait "hostage" was the threat from the US of doing an "Operation Praying Mantis v2" and destroying their navy and attacking them. And when the US did that anyway, they had nothing to lose.
- cyanydeez 9d ago"Oh no, my drinking water tastes like ~~crap~~arsenic after I ~~pooped in the well~~deregulated business interests"
- mitxela 9d agoThe government has fully lost control of the long-term Treasury yield - this is their attempt to bring it back under control. I expect to see the president fire the Fed, nationalise it and make the rates negative, collapsing the economy.
- senectus1 9d agowell thats one way to get out of having to pay back your loans :-|
- carefree-bob 9d agoThe yield curve has always been controlled by the Fed, and this remains the case. No one has lost control. The yield curve is the time path of short run rates, adjusted by risk. So, for example, if the market thinks inflation will rise -- for example because of a foolish war against Iran -- then they will sell the long dated bonds because they know the fed will hike rates in the future, making the long dated bonds less valuable, and they want to get ahead of that. If, on the other hand, they think inflation will be too low, they will bid up the longer dated bonds because they expect the Fed to lower rates in the future, making the long dated bonds more valuable. The entire bond market is fixated on trying to guess what the Fed will do next, so that is why they peer at the economic data and try to guess in which direction the Fed will move and when. That is the opposite of "losing control" of the yield curve. The problem is Bessent trying to control something that he has never had any control over, by jawboning the market and doing silly things like trying to intervene. Bessent is the Treasury secretary. Treasury does not, and never has, controlled the yield curve. Whatever games he plays buy buying and selling bonds has only a short term psychological effect on the market, and soon people brush it off. The Fed controls the yield curve, not Treasury. Bessent is a hedge fund guy that is really not well suited to the role he is playing. Now, they want to put Bessent in charge of economic sanctions against Iran, when we shouldn't even have any sanctions against Iran. The US is sanctioning the world's top oil producers, and then complaining about oil shortages.
- flyinglizard 9d ago[flagged]
- deleted 9d ago[deleted]
- aurareturn 9d agoThis administration wants lower rates. Also this administration does everything it can to increase inflation such as tariffs and starting another endless war in the middle east.
- DarkmSparks 9d agoThe administrations choices are fairly binary now. Inflate away the $40Trillion+ debt they can never pay back Or Hard default on the debt, and be the one holding the hot potato as the union breaks up. Fed is trying to thread the needle between the two and keep the music playing as long as possible.
- grey-area 9d agoThere is one obvious choice here, the policy is inflation and always has been.
- iririririr 9d agoyet many "third world" countries managed to pay their debts just fine. some even more than once in recent history. American exceptionalism even in failure?
- RussianBot9580 9d agoHow is it failure? You use your military to force trade to occur using your tokens. You control the supply of said tokens. You leave some other loser holding the bag for your debts. You win.
- iririririr 9d agoBecause they cannot force the world to buy their meme token anymore. Either they pay up and joing the world being a good credit-score conscious citizen or they get the boot. And people still think they don't have a political choice because it is impossible to pay it up. You are all alienated and going to the double down disaster.
- tancop 9d agoThe only reason we have to choose between inflation and expensive loans is corporate profits can't ever go down. It's perfectly possible to freeze margins and ban increasing prices unless a business proves their costs went up, but to enforce that you would need to a) have a competent administration and b) not be scared to piss off your billionaire donors. Allowing stock buybacks and not taxing dividends heavily is a choice. Not breaking up monopolies is a choice. Inflation comes down to high oil prices and corporate greed powered by weak competition. Starting wars is Trump's fault. Subsidizing big oil instead of setting price controls is also his choice, as is doing everything he can to slow down EV adoption that would reduce demand.
- brainwad 9d agoThere are a lot of SKUs to regulate. The cost of the bureaucrats checking the requests for basic "my price is going up because my inputs went up" price rises would be staggering. Also it would disincentives any price drops being passed on.
- paulryanrogers 9d ago> Also it would disincentives any price drops being passed on. Are any cost drops being passed on as lower prices?
- pjc50 9d ago> It's perfectly possible to freeze margins and ban increasing prices Americans across the political spectrum will call you a communist for this, as they do whenever rent controls are brought in.
- dartharva 9d agoWhat you suggesting goes against the foundational and existential code of the United States of America.
- TrackerFF 9d agoIncoming unhinged POTUS rants and demands in 3…2…1… But you know what, I’m glad to see that the fed is still operating independently. The doomer in me thought they’d fold to Trump, especially right before the midterms.
- defrost 9d agoThere appears to be more and more people throwing back against Trump; after the courts recently again said no to his need to plaster his name on the Kennedy Centre, he went a wailin' to his supposedly in pocket Kennedy Centre board: But even that is not providing him comfort these days. Representative Joyce Beatty (D-OH), an ex-officio member of the Kennedy Center board and the member who sued over his takeover of the center, explained to Symone Sanders-Townsend of MS NOW that Trump called into the board meeting after the court decision and “went into a tantrum.” While most people appear to have refused to confront Trump to his face—Maine governor Janet Mills’s “We’ll see you in court” was so rare it made headlines—Beatty took him on. She recounted: “It was the most unprofessional thing that I’ve ever witnessed or been a part of it.” But after he called her “an obstructionist” and “dumb” and said he thought she was “incompetent,” she retorted: “I know you’re incompetent.” Beatty appealed to the chair to stop Trump’s unprofessional behavior, but when he continued to berate her, claiming it would be her fault if someone were killed at the center, she responded: “You’re already killing people, we’re at war.” And when he talked about what a great developer he was, she “reminded him that he had more bankruptcies than anybody in the room.” “I mean, it really went there,” Beatty told Sanders-Townsend. “I was not going to let him bully me, intimidate me. And the facts stand for themselves.” Indeed, these days, facts across the board are challenging Trump’s image of himself. ~ Letters from an American (September 16, 2026) https://heathercoxrichardson.substack.com/p/september-16-2026 https://heathercoxrichardson.substack.com/p/september-16-202...
- aurareturn 9d agoAt this point, people don't even care about his rants.
- qzw 9d agoSome care enough to pay $100K to get them before everyone else.
- xnx 9d agoDupe: https://news.ycombinator.com/item?id=49731356 https://news.ycombinator.com/item?id=49731356
- dashee 9d agoAnd the dot plots suggest no rate decreases until 2028.
- qzw 9d agoNo rate decreases until a “real” recession, but yes, early 28 sounds about right.
- benj111 9d agoMeanwhile Bessent is buying long dated bonds and selling short dated, betting the yields will go down. Dear US, try not to take the rest of the world with you when. You implode.
- dakolli 9d ago[dead]
- easyThrowaway 9d agoBut if you bring everyone down with you, You don't have to pay anything to anyone. It's not like Donald Trump didn't use this exact strategy already when he had to get out of debt from his private ventures.
- eightman 9d agoSo Trump spent weeks on a fake fraud investigation into Powell to try and force him out because he would not cut the rate, fails at that, then finally gets his choice in place and the dude raises rates almost immediately?
- davidricodias 9d agoThe rate decision is based on the FOMC votes, not the FED chair. The FOMC decides the policy, the FED implements the policy
- blahblaher 9d agoThis wont do absolutely nothing whatsoever to bring down inflation. Interest rates don't open the Straight of Hormuz, don't increase production of oil or any other commodities. the only way interest rates affect anything is when they meaningfully decrease investment, consumption, in other words a recession or depression.
- beej71 9d agoDon't the latter things you mentioned bring down inflation?
- deleted 9d ago[deleted]
- KoftaBob 9d agoA small price to pay to serve the interests of a certain Levantine country whose civilization is built on the [Dark Triad](https://en.wikipedia.org/wiki/Dark_triad https://en.wikipedia.org/wiki/Dark_triad)
- RickJWagner 9d agoIn the long run, inflation is probably the most potent tool in the government toolbox for managing the debt. Raised interest rates are the brakes on that tool. I wouldn’t be surprised to see above average inflation sporadically jumping up for a while.