Coin Bureau: Fed policy rate will rise

Said on Feb 14, 2022, at 12:18 in the video.

What was said
Coin Bureau

@coinbureau

“this inflation combined with low interest rates has incentivized consumers in the united states to borrow more than ever before causing consumer debt to reach over 15 trillion dollars in 2021 this is bad news because the federal reserve is expected to begin raising interest rates in the coming weeks in an attempt to tame inflation”
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PredictionFed policy ratewill riseby Mar 7, 2022
What happenedafter 1 year
Correct

Reading when said

0.25%

Feb 14, 2022

Reading at close

4.75%

Feb 14, 2023

Change

+4.50 pp

The policy rate was 0.25% at the start of the window and 4.75% on Feb 14, 2023, a net change of +4.50 pp. The largest increase inside the window was 450 basis points. The stated threshold was 25 basis points.

30 days

Incorrect

90 days

Correct

180 days

Correct

1 year

Correct

The window it was checked over

Fed policy rateWindow checkedRecession (NBER)
−1%0%1%2%3%4%5%6%201920192020202120222023Said on Feb 14, 2022
−2%0%2%4%6%2019202020222023Said on Feb 14, 2022

Federal funds target range, upper limit: Federal Reserve Board via FRED, figures as first published. The shaded span is the window the call was checked over; grey bands are recessions.

Result at every window

All windows are shown, so none is picked
Result at every window
WindowResultAt the startAt the endChangeBenchmark
30 daysR-FED v4Incorrect0.25%0.25%Mar 16, 20220.00 pp—
90 daysR-FED v4Correct0.25%1%May 15, 2022+0.75 pp—
180 daysR-FED v4Correct0.25%2.5%Aug 13, 2022+2.25 pp—
1 yearR-FED v4Correct0.25%4.75%Feb 14, 2023+4.50 pp—
3 yearsR-FED v4Correct0.25%4.5%Feb 13, 2025+4.25 pp—
5 yearsR-FED v4Pending——Feb 13, 2027——
Stated deadlineR-FED v4Incorrect0.25%0.25%Mar 7, 20220.00 pp—
Why: 30 days

The policy rate was 0.25% at the start of the window and 0.25% on Mar 16, 2022, a net change of 0.00 pp. The largest increase inside the window was 0 basis points. The stated threshold was 25 basis points.

Why: 90 days

The policy rate was 0.25% at the start of the window and 1.00% on May 15, 2022, a net change of +0.75 pp. The largest increase inside the window was 75 basis points. The stated threshold was 25 basis points.

Why: 180 days

The policy rate was 0.25% at the start of the window and 2.50% on Aug 13, 2022, a net change of +2.25 pp. The largest increase inside the window was 225 basis points. The stated threshold was 25 basis points.

Why: 1 year

The policy rate was 0.25% at the start of the window and 4.75% on Feb 14, 2023, a net change of +4.50 pp. The largest increase inside the window was 450 basis points. The stated threshold was 25 basis points.

Why: 3 years

The policy rate was 0.25% at the start of the window and 4.50% on Feb 13, 2025, a net change of +4.25 pp. The largest increase inside the window was 525 basis points. The stated threshold was 25 basis points.

Why: 5 years

Not yet resolved. The window closes Feb 13, 2027.

Why: Stated deadline

The policy rate was 0.25% at the start of the window and 0.25% on Mar 7, 2022, a net change of 0.00 pp. The largest increase inside the window was 0 basis points. The stated threshold was 25 basis points.

What was said around it

how the cpi is measured you'll know that official inflation statistics are misleading to say the least unofficial inflation statistics suggest that inflation is running even hotter at 15 and by unofficial i mean the 1980s cpi measurement this inflation is due to a combination of money printing by the federal reserve in response to pandemic restrictions as well as supply chain problems caused by pandemic restrictions notice a pattern this inflation combined with low interest rates has incentivized consumers in the united states to borrow more than ever before causing consumer debt to reach over 15 trillion dollars in 2021 this is bad news because the federal reserve is expected to begin raising interest rates in the coming weeks in an attempt to tame inflation this means this 15 trillion dollars of debt is going to become a lot more expensive to pay off and we could even see some individuals and institutions start to default on debt payments they can't afford if that happens assets will be sold to cover the costs of servicing that debt and this will lead to a market crash across the board history suggests that the federal reserve will reverse course and reduce interest rates when the markets

What a person said is shown in their own words and is never translated. The link goes to the exact second in the video.

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