Fed fund rates are only back to where they were in 2019 before the pandemic. The period after the great recession yielded much lower rates for longer than they should have. "Normal" is in the 4-5% range historically. In the 80's it was double digits. Not doom and gloom at all.
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And where do you think these allegedly illegitimate windfalls of cash taken by those evil rich people goes when they get it? A mattress? No, they spend it or they invest it, both of which = putting it back in the economy. When they say that Musk has $200B. He doesn't have a giant stack of greenbacks, he has valuable companies that employ zillions of people and it buys tons of stuff that employs still more people, and it's delivered by still more people. It's not stuffed in mattresses and the rich aren't pulling a McDuck and frolicking in it. They put it to work, which puts everyone else to work.
And I'm about to get the ax. I work exclusively in refi.
@ywk mortgage rates are not like the stock market, they don't react to Fed news minute by minute. This rate hike was priced into mortgage rates months ago? Ah, no. Sounds like you've been around the mortgage game a few months now. 6 weeks ago, the Fed raised rates by an unprecedented 75 bp which pushed mortgage rates up to nearly 6%. Yesterday's 75 bp hike made history as in this never happened before. Where do you think mortgage rates are headed now? You probably have an ARM, good luck with that!
Of course a tiny portion of it trickles down. No one is saying that literally 'none of it does'. The problem is over the decades, less and less is trickling down. When you have publicly held companies owned by institutional (aka already rich people) investors, an increasing portion of wealth is being funneled up to people that already have a ton of money. You'd have to be blind to notice otherwise. Companies are offshoring jobs to save money. The 'saved' money returns in the form of increased share price. That share price benefits the institutional investors. Your 401k and personal shares of a particular company/index fund/mutual fund etc amounts to nothing in comparison. An obscene amount of wealth is being transferred out of the middle class to the existing wealthy.
So now, not only do you have jobs being offshored, you have stagnant wages, increased workload, reduced benefits...etc etc. Congratulations, the wealthy can now buy an additional yacht that was built overseas. The company behind it also makes sure to have as much of their assets in tax havens so as to further protect that share price. Good luck with what remains trickling down.
It's literally impossible for $ to not trickle down, unless the theoretical rich population never buy anything or hire anyone. In breaking news, rich people buy things, and those things are universally made by non-rich people, and deliver by non-rich people, and installed by non-rich people, and serviced by non-rich people. There are entire industries who's only customers are rich people, none of the people in those industries would have those jobs if the $ didn't trickle down. Min wage guy isn't buying a yacht or large custom home or a fancy sports car.
So yeah, it's a nice talking point, but no rich person goes through life without spending, and even if they did, their heirs would, or their heirs would. It's just a matter of time, and as a result concerns about $ not moving through the economy enough because 'made up reasons' are nonsense, usually spouted by people in government who've never had a real job.
OP needs to do a little research on how rate hikes impact mortgage rates. This was priced into mortgage rates months ago meaning that the impact that this decision made on mortgage rates already happened. If it would have been more or less, then rates would have reacted today.
@inx. Just like trickle down economics that never trickles down? 🤣
Amazing what some people will buy hook line and su---r.
Yield curve inversion. Look it up
There it is, clear as air.