Federal Reserve to increase interest rates by 75 basis points for the third time

Re:Federal Reserve to increase interest rates by 75 basis po... by bryanlarsen on Wednesday September 21, 2022 @03:07PM (#32929944)

We live in a world that is awash in capital because old people & rich people have a large amount of capital. When the supply of something is high, the price goes down. And the price of capital is interest rates.

[ Parent | on HN ]

Re:Federal Reserve to increase interest rates by 75 basis po... by greatpostman on Wednesday September 21, 2022 @03:11PM (#32930012)

The excess liquidity comes from low rates. No serious financial investor thinks otherwise

[ Parent | on HN ]

Re:Federal Reserve to increase interest rates by 75 basis po... by thechao on Wednesday September 21, 2022 @03:31PM (#32930315)

I had literally never thought of this in any way. I've just finished reading two papers: one which shows that net-investment isn't really correlated to savings or interest rates which exactly supports your position (with data!); and, a second which shows that the ratio of old-to-young people is an incredibly good predictor of interest rates (with data!).

You're both right? I suspect that means there must be a third option.

[ Parent | on HN ]

Re:Federal Reserve to increase interest rates by 75 basis po... by bryanlarsen on Wednesday September 21, 2022 @04:11PM (#32930869)

$6T of QE is about 1/10th the size of the US bond market and 1/20th the size of the US stock market.

[ Parent | on HN ]