Interest Rates: How Many More Times Will They Go Up?

June 12, 2018 01:57 PM
The Federal Reserve is expected to increase interest rates tomorrow.

On Wednesday, the Federal Reserve Open Market Committee is widely expected to increase interest rates again. While most analysts, including Pro Farmer’s Brian Grete and Jim Wiesemeyer, feel confident rates will go up tomorrow, one question remains: How many more times will the increase this year?

“I’d be shocked if it isn't a quarter point rise,” Grete told AgriTalk host Chip Flory on Monday. “I think the bigger focal point will be and should be on Chairman Powell’s comments afterwards.”

Farmers should know that Chairman Powell’s comments during his quarterly press conference will be the best indicator of the steps the Federal Reserve will make moving forward, Grete said.

The market expectation is another rate hike in September and possibly one in December.

According to Wiesemeyer, the important points to listen for include how many times the committee will increase rates, by how much and what they say about inflation.

“All that will determine, you know, the degree of interest rate hikes ahead,” he said.

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Spell Check

Jim Weeber
Godhen, IN
6/13/2018 02:19 PM

  Same comment I left on another article. Appropriate I think: All the things about resiliency and good works laid upon farmers are true. Bottom line there is too much of everything and farmers are having trouble making the monthly expenses. Don’t even talk about covering depreciation on recent expansions and major capital investment. Especially in dairy. Buy a box of parts for your name brand equipment at the dealer lately? That will wake you up about the true value of the dollar along with your insurance premiums. It is costing to much too breath and have your name on the mailbox these days. Not so long ago you could tighten up, hunker down and get through. Maybe beyond most operations now without significant outside revenue or a special nitch. I’ve been clear on 2 farms a long time. Much because my dad was a 29’ depression survivor and we always operated in survival mode. No way can a price taker farmer continue to buy equipment manufactured by price makers with big ticket labor, perks, etc. in the price. This is why good used stuff is bringing more than expected lately. Get lean and out from under all debt possible. Higher interest rates are coming. Higher taxes are here and more coming across the nation. Productive sectors pay for everything. That is mining, manufacturing and agriculture. Everything else is a service riding on those 3 things. Can’t offer solutions just facts about what is here and more of coming. The golden gooses who hit it hard every day, including Sundays and holidays for many, in this country continue to be squeezed harder to serve humanity as a whole. Now go make it a great day!


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