Just as our blog community and far smarter people predicted . . . The Fed raised interest rates today in a move that's just as much political as economic.
More to the point . . . Like it or not, cash is getting more scarce for developers, borrowers and speculators who have shaped the current downtown economic exuberance.
Here's just a bit more insight from a very knowledgeable reader . . .
KICK-ASS TKC TIPSTER: "Well, the FED dutifully obliged with the expected 0.25 point rate hike at approximately 1:00PM our time. It was a unanimous decision, with KC Fed's Esther George no doubt happy to see the Committee finally come around to her way of thinking. Chair Yellen and committee anticipate 3 additional increases coming in 2017, a change from their previous outlook of just two. We remain of the opinion that the bullish stock market tide has, or is in the process of turning downward. A great many people within the industry would like to hold things up through the close of the year (bonuses), but..... "you don't always get what you want, sometimes you get what you deserve." . . . In general, we now look for the big trend to be downward until approximately August 2017, until the next reassessment."
Links . . .
Fortune: What the Fed Interest Rate Increase Will Mean For You This Time
Slate: The Fed's Rate Hike Could Spoil Some of the GOP's Big Plans—and Trump Is Partly to Blame
Vice: The Fed is confident in the economy Obama is leaving to Trump
Politico: Fed rate hikes threaten to pop Trump's bubble
CNBC: JPMorgan, US Bank to raise prime lending rate to 3.75% from 3.5%
WSJ: Fed Raises Rates for First Time in 2016, Anticipates 3 Increases in 2017
MIC: Millennial Guide to Interest Rates: How the Fed affects credit, student loans and more
Developing . . .
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