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Author Topic: News said rate hikes but ws borrow now a lot  (Read 33 times)
325btc (OP)
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July 03, 2022, 12:00:24 PM
 #1

No hikes in real so powell should explain us why after rate hikes ws borrow still more if not even more
The situation is funny t b honest Cheesy
jackg
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July 03, 2022, 02:53:12 PM
 #2

They were meant to curb inflation, not price everyone out of the borrowing market in one go.

A lot of salaries aren't rising at the rate inflation is so if fed rates rise too much, this'll probably have a negative affect on the housing market (and one might be coming anyway so they don't have to make that risk bigger just yet).
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July 03, 2022, 03:31:30 PM
 #3

Some solutions will not have an actual effect quickly, meaning that you may start seeing results after several quarters, but the Fed's policy came late, according to many analysts.
Raising interest rates will prompt many to deposit if it is higher than inflation. As for those who continue to borrow, they are betting on an increase in inflation and the Federal Reserve has stopped continuing the monetary tightening policy, and therefore we will find a stabilization of the interest rate, not raising it.

In the current state of uncertainty it is impossible to predict the behavior of consumers.
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