Feds raised rate to 5%

**markio26** · 05-10-2006, 11:15 AM

Re: Feds raised rate to 5%

i am hoping this is the last hike... i was reading reuters this morning and they are hoping the fed shows signs this is gonna be it...

**sweeps** · 05-10-2006, 11:19 AM

Re: Feds raised rate to 5%

Unless something drastic happens, I would count on at least one more rate hike.

**poundwise** · 05-10-2006, 11:49 AM

Re: Feds raised rate to 5%

WASHINGTON (AP) - The Federal Reserve on Wednesday raised a key interest rate to the highest level in more than five years and signaled it may pause to assess the impact of its string of rate hikes. However, the Fed also left the door open for further rate increases.

**lucasrd** · 05-10-2006, 12:04 PM

Re: Feds raised rate to 5%

I just feel bad for all those who have 5/1 ARMs that start to adjust now ...these new rates will cause alot of mortgage payments to go up...

**lucasrd** · 05-10-2006, 12:36 PM

Re: Feds raised rate to 5%

Interesting...so much for believing Suze Ormann

**veronak** · 05-10-2006, 01:58 PM

Re: Feds raised rate to 5%

In a way I hate to say it and I know it is wrong but I am glad the rates are rising maybe some of the homes that I have been admiring will be on the market at a much lower price. But I agree if you have any arm loans, cc and HELOC you are screwed

**boefixepa** · 05-10-2006, 02:44 PM

Re: Feds raised rate to 5%

GGRRR I have a HELOC! I need the LLC I'm part of to sell so I can pay it off! Keep your fingers crossed. We have an offer and they have to have financing by the 15th!! Here's to hoping!

On the flip side...Here's hoping ING doesn't dilly dally on the interest hike!

**JoyJoy** · 05-10-2006, 03:24 PM

Re: Feds raised rate to 5%

What a mess this country is in with bad news everywhere one turns. Credit card companies are getting over like fat rats if you are even late with one creditor (universal default) or even late paying a utility company. Credit card interest can go up to as much as 40% today also. President Bush received over $8 million from the credit card companies for his election compaign and that is why, I believe, the rates are continuing to go up with no end in sight. Elected officials take care of those who help them get in office. We should stop using credit cards for a specific amount of time and show some solidarity. In the Bible there was a period called Jubilee where the government forgave their citizens their debts and everyone started over on a clean slate. If not credit cards then some other form of boycotting to show that we need relief and that we do not agree with the way this country is headed!!

**VJW** · 05-11-2006, 09:38 AM

Re: Feds raised rate to 5%

So much for the ‘One More and Done’ crowd. From the Fed’s press release:

“The Committee judges that some further policy firming may yet be needed to address inflation risks”

Ah, like the rampant price increases across the national economy like gasoline, home heating oil, natural gas, health care, housing, precious metals, insurance, food, education, industrial metals, and transportation ? The only place inflation has been non-existent has been in wages.

Now the Republican controlled Congress is pushing more tax cuts for the Rich & Corporate legislation that will add another $100 BILLION to the federal debt, with those with incomes under $50,000 receiving tax relief of between $2 and $46, while those with incomes over $1 million receiving tax relief of more than $42,000. Never mind throwing money at the wealthy has never before in history benefited the American economy.

Oh, and Whirlpool has announced it will be closing three American appliance manufacturing plants and eliminating 4,500 jobs.

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**VJW** · 05-12-2006, 04:07 PM

Re: Feds raised rate to 5%

This just in, the Fed is NUTS.

The total amount of money Americans have to spend after taxes relative to overall output of goods and services has hit the lowest level in 25 years:

U.S. Disposable Personal Income as a % of GDP

CHART

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**JoyJoy** · 05-12-2006, 05:23 PM

Re: Feds raised rate to 5%

Originally posted by rexdart

well said VJW

on the HELOCs and ARMs though, look I feel bad for those affected but how could you not know it was going to happen? interest rates had fallen to a historic low and those products were being pushed so hard for a reason...rates had nowhere to go but up!

and as far as the credit cards go....well, you know you shouldn't care one wit what the interest rates on credit cards are...

True rex but still it seems rather harsh with all the raises in the interest rate...what is it 16 already? HELOC were being pushed rather hard, I agree, as we got one ourselves!!

I have only 0% interest rates on two cards which will be paid off by November, but not everyone has 0% interest rate cards and I didn't get them myself until March of this year.

**JoyJoy** · 05-12-2006, 05:26 PM

Re: Feds raised rate to 5%

Originally posted by VJW

This just in, the Fed is NUTS.

The total amount of money Americans have to spend after taxes relative to overall output of goods and services has hit the lowest level in 25 years:

U.S. Disposable Personal Income as a % of GDP

CHART

#

Unbelieveable!! or should I say believeable after looking at the necessary spending out of the paycheck every two weeks.

**Ima saver** · 05-13-2006, 07:12 AM

Re: Feds raised rate to 5%

The rate on my money market changes every time the fed raises rates. It just went up, again!

**JoyJoy** · 05-13-2006, 08:21 AM

Re: Feds raised rate to 5%

Originally posted by rexdart

JoyJoy, I didn't mean everyone should have a 0% card, I meant nobody should be carrying a balance and routinely funding the evil empire (above the transaction fees) most spend so much time condemning, that's all.

It was mostly just a playful nudge, not a judgement.

Sorry if it ruffled.

Me ruffled? No it wasn't accepted in that vain, rexdart. I understand what you are saying and you're perfectly right.

Feds raised rate to 5%