Fed rate Increase ?

[sv2007]

Just a little while ago people were thinking opposite of what they are thinking now.
Anyway, what's your prediction?
I don't see any way to close the poll, so please don't vote after next week since hindsight is 20/20.

[TexasHusker]

who knows and who cares

[disneysteve]

I really pay no attention to this stuff. I couldn't tell you what the Fed rate is now. I know, in general terms, that rates are at historic lows so they only have one direction to go and that's up. Will it happen soon? I have absolutely no idea.

[bjl584]

It might tick up another quarter point in June, but it won't mean much for anyone. The interest rate on your HELOC or one of your credit cards could tick up ever so slightly.

[disneysteve]

It might tick up another quarter point in June, but it won't mean much for anyone. The interest rate on your HELOC or one of your credit cards could tick up ever so slightly.

I have no variable rate debts. Only a fixed rate mortgage and a small balance (under $2,000) left on a car loan.

I can only benefit from a rate increase by savings rates going up.

[corn18]

Can we add a third option of "I have no clue?" Every time I try to predict the market and pick a winner it does the exact opposite. Maybe I should post where I am long and short and you guys can do the exact opposite so you can get rich quick. The issue would be that if I know i have to do the wrong thing, it will screw up the process. Kindof like Schrodinger's Market.

[Fishindude77]

I suspect a very slight uptick soon.
Don't see it going down much more.

[Singuy]

From an macroeconomic standpoint, this is a very weird time so the answer to this is "who knows".

Inflation rate is still abysmal even with historically low almost non-existence interest rates but the economy is doing better...but perhaps job growth is losing steam.

Don't look at our current stock market to judge our actual economic status...it is artificially boosted by cheap cheap credit and only the 0.1% is benefiting from it. I would look at job growth, wage growth, and inflation.

I don't see a reason why anyone would raise interest rates giving these factors, but a 0.25% increase is more symbolic than anything....

[sv2007]

I have no variable rate debts. Only a fixed rate mortgage and a small balance (under $2,000) left on a car loan.

I can only benefit from a rate increase by savings rates going up.

A rate increase can have an adverse effect on your stock prices.
The only clear benefit for somebody would be a forex trader long on the dollar.

[pflyers85]

I voted that the rate would go up but I don't see it going up much if at all. There was just a report that showed consumers borrowed less money than anticipated. The optimist would say that is because they don't need anymore credit to spend. The realist would say they have over consumed on credit and are tapped out.

At this point the Fed is faced with a catch 22. Since it appears consumption is slowing down a bit in theory it would make sense to lower rates to encourage consumers to take on more debt and spend. However, IMO consumers aren't borrowing as much as a sign that they are unwilling to take on more debt and I seriously doubt lowering the rate would change that behavior at this point. To correct this it could be argued that the Fed should significantly hike rates to encourage more savings. The problem is our current economy is reliant upon debt based consumption. Significant rate hikes would encourage consumers to save more but it would completely undermine the economy because it is not set up to prosper under savings based production.

That is why ultimately I see the Fed not doing anything too drastic hoping that the market will be strong enough to stand on its on two feet at some point. Personally I don't see this happening and I think a recession is coming either way. Whether it happens late 2016 into 2017 is immaterial at this point. The bottom line is the market will constantly undergo frequent boom and bust cycles when the economy is predicated on debt financed consumption.

[rennigade]

I care more about the food I brought for lunch today than I do about the feds increasing the interest rate.

[bjl584]

I care more about the food I brought for lunch today than I do about the feds increasing the interest rate.

Anyone with no debt or manageable debt doesn't need to pay much attention to the FED rate, as it won't have much impact on their life.

If the rate goes up higher however, then anyone with investments that include dividend yielding stocks may want to start paying attention. Those stocks could take a hit in higher rate environments.

But for now, enjoy your lunch....

[Nutria]

If the rate goes up higher however, then anyone with investments that include dividend yielding stocks may want to start paying attention. Those stocks could take a hit in higher rate environments.

And bonds, too. (That's why I'm in a short-term bond fund, since their share price recovers quicker during rising interest rates.)

[sv2007]

ok, ok, poll closed.

So who else voted "no" ?