FED hikes interest rates by three quarter

[Fish]

https://amp.cnn.com/cnn/2022/06/15/economy/fed-rate-hike-decision-june/index.html

[perugu_vada]

Wat does this mean ? Are banks going to charge additional 1.5-1.75% more interest rates on loans ?? 

[All_is_well]

1 minute ago, perugu_vada said:

Wat does this mean ? Are banks going to charge additional 1.5-1.75% more interest rates on loans ?? 

Ade na question 🙋‍♂️ 

so new mortgage rates for 30 years is 7-8% 😳

[perugu_vada]

https://theconversation.com/5-things-to-know-about-the-feds-interest-rate-increase-and-how-it-will-affect-you-185008#:~:text=Interest rates represent the cost,why mortgage rates rise accordingly.

5. What does this mean for consumers and the economy?

Interest rates represent the cost of borrowing, so when the Fed raises the target rate, money becomes more expensive to borrow.

First, banks pay more to borrow money, but then they charge individuals and businesses more interest as well, which is why mortgage rates rise accordingly. This is one reason mortgage payments have been rising so rapidly in 2022, even as housing markets and prices start to slow down.

[Katti_Ramdas]

4 minutes ago, perugu_vada said:

Wat does this mean ? Are banks going to charge additional 1.5-1.75% more interest rates on loans ?? 

Bank to bank overnight appulu chesukuntaru dani interst rate pencharu so moosukoni untar

[anna_gari_maata]

I doubt if it effects current inflation because 6% ki kone vadu 7% ki kooda kontadu

[iddaritho]

Expected increase , stock market did not fall 

slow ga paduthundi emo 

[TrishaManiac]

no one cares

[Anta Assamey]

6 hours ago, perugu_vada said:

Wat does this mean ? Are banks going to charge additional 1.5-1.75% more interest rates on loans ?? 

It is not directly relative... but yes the interest rates from banks will increase...

[Spartan]

Banks and Fin Institutions borrow money from Fed and lend it to consumers and companies.

vallu borrow chese loan rate perigite, they will pass it to end consumers, and that will pass on to common public.

if they dont want to, then they have to make major adjustments in their spending. ..and that Adjustments is what Fed is targeting will control the inflation.

[perugu_vada]

8 minutes ago, Spartan said:

Banks and Fin Institutions borrow money from Fed and lend it to consumers and companies.

vallu borrow chese loan rate perigite, they will pass it to end consumers, and that will pass on to common public.

if they dont want to, then they have to make major adjustments in their spending. ..and that Adjustments is what Fed is targeting will control the inflation.

How inflation will be controlled really ? Banks medha overhead ante most likely consumer medha padinatle kada ? So obvious ga there will be more price increases 

[Gowtham7777]

1 minute ago, perugu_vada said:

How inflation will be controlled really ? Banks medha overhead ante most likely consumer medha padinatle kada ? So obvious ga there will be more price increases 

common man reduce spending(ex buying house/car) at one point because of high prices ...

companies revenue comes down.... stocks down(this is predicted so stocks are down)

companies cuts spending by  some layoffs..... 

layoffs means again less spending... so demand comes down...

 

Fed release 3.6T(my knowledge)  during 2020, so with interest rate increase it collects around 5B-50B per month from banks, simply to burn it. 

[tom bhayya]

4 minutes ago, perugu_vada said:

How inflation will be controlled really ? Banks medha overhead ante most likely consumer medha padinatle kada ? So obvious ga there will be more price increases 

People will stop borrowing unless it’s really needed that way less money flow , banks will fire few businesses will cut their expenses by firing or not spending on improvements or upgrades or whatever , consumers will spend less ila butterfly effects untaayi. Ultimately middle class or poor ni balichesthey kaani inflation control avvadhu

[Thokkalee]

This is not all about mortgage rates.. which will impact only a small % of the population… 

Businesses run on credit and they borrow from banks based on the current interest rate for day to day operations… if the rates are high, their cost of doing business is high… they pass on these costs to the consumers… consumers stop or reduce buying as the prices increased.. revenues go down for the businesses… it is a downward spiral from there… higher costs lead to lower spending.. 

[Ravi860]

aat** care antunna housing market and east facing illus