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Honored Advisor
Posts: 15,209
Registered: ‎05-13-2010
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Re: Fed rate hike same affect as rate cut.

Smiley Happy   The Fed had to raise rates or lose credibility, but I don`t think the economy is any stronger than it has been in the past 8 years when rates were 0% ..well worse the national debt is now $20 Trillion.

 

I`ve heard smart advisors say that if the Feds raise rates two more whole points, then the average farmer will be unprofitable.  I suppose they took the average farmer debt and figured 2% more cost to service that debt and Zip! there goes his profits.   That is pretty scary, because if the Fed continues on this more hawkish course, we`ll be halfway there by the end of this year.

 

I think you look at the housing market and much of a interest raise and the monthly mortgages will be unmanageable, homeowners won`t be going out for steak dinners, that`s for sure and housing landlords will feel the justification to raise rents too.

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