FED Takes It in Butt, Folks Take It In Cajoles?

In promising not to raise interest rates ¾% next month, FED Chrm Powell kissed Wall Street’s butt begging him not to trigger a recession, yet consumers took it in the cajoles as mortgage, car loan & credit card rates go up.

Mind you, the WSJ warns us NOT to expect higher interest rates on CDs or savings accounts, since “banks have no incentive” to pass on the FED’s rate hike, at least, in the near term. But, at least, the editors observed, Mr. Powell got points with the Wall Street Bigs without having to concede he’s been MIA on the inflation AND recession front.

Well, at least, Powell did warn of less draconian ½% rate hikes in June and probably July; yet, that will only up Uncle Sam’s interest rate charged to borrowing banks to the 2019 pre-pandemic level … at it will still be far below the projected inflationary rate of 5-8 percent. So, reality is, inflation AND recession are still likely to very much be a part of the financial landscape for the foreseeable future.

Davd Soul