What happens when the Fed raises interest rates?

On September 3, the Hutchins Center on Fiscal and Monetary Policy at Brookings discussed all these questions and more with four experts: Brookings’ Donald Kohn, a former Fed vice chairman; Peterson Institute’s Joseph Gagnon, a former top Fed staffer, Johns Hopkins’s Jon Faust, and Julia Coronado of Graham Capital.

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[SilentReviewer]

19:39 "the markets today are about 25% priced for September"... what does this mean?

[theodorerooseveltcharlesto]

how much is a paper dollar backed by nothing really worth

[takashimurakami]

The Globalization of Financial Market, the concentration of banking companies in the world (making several banks too big to fail) and the expansion of global acceptable major currencies, made the interest rate as instrument, together with currency fluctuation instrument, to be the very efficient means to provide control and manipulate inflation rate in the global economy in such a way that the issuers of money expansion will not directly suffer the consequence of inflation. The best case is the trillions of dollars, yens, EUROS in money expansion after 2008 which did not affected in terms of inflation in the USA, Japan, Germany and other major countries, maintaining the interest rate near to zero in their own countries. Rising interest rate by Federal Reserve means that banks understand that can get bigger “share” of the profit being generated by the positive expansion of economy (measured in terms of job increase and GDP growth rate, among other factors), without deteriorating their credit risk. In the end, all is for profiting more who has the power to dictate the direction of global economy. Nothing new, indeed.The question is: are the borrowers (persons or companies or countries) really prepared to afford this kind of move now? Or will it cause a serious depression outside the major countries?

[JP]

What happens?... the stock market goes up - lol - We are now living in bizarro world.

[slovokia]

Does anyone seriously think that a .25 percent increase in the fed funds rate will have a significant effect on the US economy?

[abhijitraorane]

U.S is transcending all its economic parameters
-misery index has reached 32.89 points - loan defaults will increase
-ratio of capital reserves to unstable liabilities is $1 (cap reserv) to $77 of liabilities
-ratio of stock market capitalization to GDP ratio risen to 203%
-As per CIA fact book USA GDP is of 18 trillion dollars & its debt is 18.1 trillion dollars (excluding 127 trillion dollars of unfunded liabilities for social security, healthcare, student loans etc

[knioutom]

OBAMA IS THE HALF TIME SHOW IN GOP SECOND DEPRESSION

[romlyn]

You people are so removed from reality... you cannot even give a clear answer on robotics, AI and Automation. And nobody addressed the downward pressure on wages and how it impacts the wider economy. You might have near to full employment - but in what kinds of jobs and for what wages and are we still seeing people hold 2 or 3 jobs just to make ends meet? And the question on automation, AI and robotics etc points to more of the job market being taken away from humans and given to tech. So what jobs are let in the US? robots are building the cars - not humans. And not one person addressed the offshoring of service jobs - like lawyers, telecommunications etc. You don't have any real insight on what impacts everyday people. And as for inflation rates - do they factor in the rising cost of rents and food? No they don't - so the inflation rate is higher than reported for most people.

[jerrymalinab]

yeah... beautiful... aloha.... support... boom Nicodemus...