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A comment on Federal Reserve pushes interest rates above 5% for first time since 2007. Parent comment

Re:Federal Reserve pushes interest rates above 5% for first ... by singron on Thursday May 04, 2023 @09:16AM (#35814787)
There are certain risks that aren't worth hedging in a stable country like the US. E.g. you don't hedge treasury bond defaults because in the unlikely event that happens, your money is probably worthless anyway and you would rather have food and guns.

A 15% interest rate is so high that even if you managed to protect your financing with a hedge, it might be unlikely you have solvent customers anymore.

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Re:Federal Reserve pushes interest rates above 5% for first ... by throwoutway on Thursday May 04, 2023 @10:59AM (#35816409)
It's gone higher:

> The fed funds rate began the decade at a target level of 14 percent in January 1980. By the time officials concluded a conference call on Dec. 5, 1980, they hiked the target range by 2 percentage points to 19-20 percent, its highest ever.

https://www.bankrate.com/banking/federal-reserve/history-of-...

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