It's almost certain that the Federal Reserve on Wednesday will raise a key interest rate for the first time in almost a decade, a move critics warn will slow the economy, chip away at workers' bargaining power, and raise consumer borrowing rates.
Let's just keep on counting how the rich get richer.
How's that working for us?
New Economics now!
Not to mention that if interest rates stay at zero for too long, there is a risk of negative interest rates. Anybody who is against increasing interest rates will find themselves even worse off if interest rates go negative and they are still paying interest to banks on their debt.
With all the economic indicators pointing to fragile, the Fed's interest rate hike will be token at best and unlikely to become an upward trend. Being an election year, rates will flatten out or drop again.
I realize that it is not a Fed function to raise the national minimum wage but RAISING THE MINIMUM WAGE to $15 across the nation would do more to help the average American much more than raising the Fed rate. Banks, especially since the abolition of the Glass-Steagall Act, will benefit from a rate hike. Banks set their loan, cd, and savings rates based on the Fed rate and as it stands now, they still make money because the installment loan and mortgage loan rates far exceed that which they pay on savings accounts or savings cd's. Add all the "fees" they charge to do what they used to for their customers for free before GS going down and their profits continue to grow. (Having watched Yellen during Senate and House committee hearings televised on CSPAN, she appears to be more honest, knowledgeable, and forthright than the likes of her predecessors Greenspan (Reagan) and Bernanke (GWB).
It’s Our Money with Ellen Brown — 12/9/15 “Digital currency is destined to change almost everything about our money systems and management. The traditional gatekeepers of credit, and the types of credit issued, are also changing. This week Ellen talks with Scott Smith, an author, financial innovator and presidential candidate who achieved great success in the old mechanics of money but sees a brighter path ahead with simple changes that can do away with income tax and the national debt. Co-host Walt McRee speaks with the CEO of a community-dedicated credit union choosing to leave the business because of harassment from the federal agency that oversees them. And Matt Stannard takes a retrospective look at the past year in public banking news.” (58:35) http://itsourmoney.podbean.com/e/it’s-our-money-with-ellen-brown-–-addressing-a-digital-divide-120915/