Forget The FED Pivot – And Housing Price Falls Won’t Stop Them Either!

To no one’s surprise the Federal Reserve delivered its third consecutive 0.75% rate increase on Wednesday as the Federal Open Market Committee raised its benchmark rate to a range of 3% to 3.25% from 2.25% to 2.5% previously. It was all pretty much as expected although his specific comments on the housing market may have shocked some. He said effectively that dropping home prices won’t stop the quest to strangle inflation. Property bulls please note.

So, after this latest rate hike, the Fed has now lifted its benchmark rate by 300 basis points, or 3% in just six months as the central bank accelerates policy to restrictive territory with the aim of slowing growth enough to make a meaningful dent in inflation.

“We can’t fail to do that,” he said, referring to the central bank’s mission against price growth. “That would be the thing that would be most painful for the people that we serve. We have got to get inflation behind us. I wish there were a painless way to do that. There isn’t. What we need to do is get rates up to the point where we’re putting meaningful downward pressure on inflation. That’s what we’re doing. We haven’t given up the idea that we can have a relatively modest increase in unemployment.”

But critically, there were no signs of easing its push into restrictive territory as it battles to cool the embers of inflation.

“We’ve just moved into the very, very lowest level of what might be restrictive [territory],” Powell said in the press conference that followed the monetary policy statement. “In my view, there’s a ways to go.”

As a result, the Fed now sees its benchmark rate rising to 4.4% in 2022, above the 3.4% forecast in June, paving the way for further front-loading of rate hikes in the remaining two Fed meetings for the year and into 2023.

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  1. ( o.O ) / – ( ^.~ ) – ( ^__^ ) / There are no breaks on this rate hike train to 5% then the moooon!
    Expect 4% in Australia

    (O.O ) ( ~_~) ( UwU ) Doin the rate hike dance.

  2. Russias special military operation is carried out by the Donbas militia not Russia directly , the operation is supported by Russia. The majority of the fighting is by the militia not Russian forces.
    The referendum in the Donbas 90% Russian occupied expected to want to join Russia will now see any foreign attack in /on the Donbas as an attack at Russia prompting the mobilisation of Russian forces.
    It's the mobilisation of Russian forces not the mobilisation of Russian reservists as reported in the west.
    Its reported as reservists in the west to give weight to the lie the Russian forces and not the Donbas militia is doing the fighting up until now.

  3. Rates will go higher until they break something. I think the point is intended 'unintended consequences' to be honest. All Central banks want to impose their CBDC onto the populace combined with a digital surveillance system, and they cannot do this with the existence of cash and indeed a sovereign concept of money. The coming banking 'crisis' will reduce populations to their knees, the people will beg for whatever stinking shitpile will be put in front of them.

  4. Their foolish trickle up wealth experiment has failed badly,no more bailouts for private banksters,greedy undeserving speculators etc,time for the ordinary people to get their fair go and share.

  5. His idea about increasing interest rates to curb inflation doesnt fit into today's economy, he will not get 2 % he will destroy 50% of people with low to medium incomes, but they don't care it seems !

  6. Good old FED/RBA they are fighting decrease inflation…lol just curious does anyone know what the actual inflation rate is? I bet most of you believe the Rowe and the RBA and also bet most of you believe the economy is strong and we are not in a recession….lol

  7. Crypto is doing exactly what it was designed to do. Act as a decentralised unit of exchange outside the banking system. The only people crying about its ‘value’ are the financial casino speculators.

  8. I assess that this central bank created previous long term cheap debt with now sudden interest increases is a planned attack on the West's middle class in line with the World Economic Forum reset.

  9. 1. Cheap, easy money creates a bubble. 2. Government offers incentives and shared equity for first home buyers. 3. The market peaks – and now they let it roll over, hurting the most indebted. Shame.

  10. Why don’t you ever hear our coward of an RBA chairman say anything like Powell just said on Australian Housing market? Ours is objectively more overheated than the US. Sack Lowe and get rid of the RBA, ASIC and APRA. Make future institutions accountable to the people and their leaders ongoing tenure performance dependent. These bureaucrats are unelected, poorly skilled and have too much power with no accountability. I could do significantly better.

  11. Psalm 33:12
    "Blessed is the nation whose God is the Lord,
    the people he chose for his inheritance.
    13 From heaven the Lord looks down
    and sees all mankind;
    14 from his dwelling place he watches
    all who live on earth—
    15 he who forms the hearts of all,
    who considers everything they do.
    16 No king is saved by the size of his army;
    no warrior escapes by his great strength.
    17 A horse is a vain hope for deliverance;
    despite all its great strength it cannot save.
    18 But the eyes of the Lord are on those who fear him,
    on those whose hope is in his unfailing love,
    19 to deliver them from death
    and keep them alive in famine"

  12. Central Banks work for the NWO WEF and ARE there to crash the system with plausible deniability to usher in the globalist re-set.
    However, unexpectedly, the Great I AM will re-set them and soon!!

  13. What the Dominatrix demands, the Gimp implements, RBA Review or no RBA Review. What is interesting now is this 'awakening' in journalists and pundits as if somehow they have engaged a critical mind and developed an analysis that is worth listening to. Honestly Mr. North this process is a study in itself. – how the discourse about this tightening is being shaped to accept that house prices falling is becoming virtuous.

    The Mandarins know they have to leave a light on at the end of the tunnel; hope can be manipulated, despair can only ultimately be bullied (remember the vaccine(s)?). But a contagious, creeping, nihilism? Now Mr. North that cannot be controlled, just like a good old fashioned Riot. The 'masses' are just clusters of data points, the inputs into Mandarin social engineering 'models' Mr. North, but the Mob is special, it always more than the sum of its parts and it always terrifies them.

    Remember Mr. North, they want Anxiety, not Anger. The tragic thing is that Australians are a passive supine people. Our Mandarins know how to keep us firmly under control. Armageddon? No, it won't be nexessary. 22 September today. Does the Cabbage have his Cyanide Capsule in his Cave ready? We'll watch how many people come to compensate him for his $50,000 "Quest" with great interest. October arrives soon!

  14. Thanks Mr. Martin…yes true believers of the New Liberal Tory way…your way will be mentioned in such impressive company as SubPrime and "The Pigs"!…well done Tory Liberal of Australia.

  15. Property bulls beware ???
    People aren't stupid , everyone realised that rising interest rates equals price stabilisation at best but more likely correction.
    I think the only warning is for you Martin given that you were predicting a crash when interest rates were falling, so here's the formula buddy interest rate rises house prices are flat or decline , interest rates fall then prices rise are more likely to rise . Write it down Martin so you can cover both sides of the coin

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