Fed rate increase = lower hifi prices?


Will the recent rate hike meant to slow down the economy result in lower hifi prices?  Seems everything shot up during Covid. Will we now see some relief?

128x128bigtex22

You want a sale? Pickup some QQQ with former FAANG now MAANA subsubsistance bread.

@deludedaudiophile Not sure I agree the prices come down, but for sure we get a lot more for the money?

Fed rate increase = lower hifi prices?

the rate increase has nothing to do with audio equipment! mostly on buying homes!!

How do you come up with these ideas? If the rates go UP, the Mfgs,& the home buyer pay more for borrowing $$$. That means mfg price increase and home buyer & renter payments go up

See below for amount of price increase:

  • Rental cars: 42.9%
  • Gas: 42.1%
  • Used cars: 24.4%
  • Hotels: 18%
  • TVs: 12.7%
  • Furniture: 11.2%
  • Meats, poultry, fish and eggs: 10.5%
  • New cars: 8.7%
  • Appliances: 7.1%
  • Electricity: 5.2%
  • Restaurant prices: 4.7%
  • Rent: 2.9%

 

These rates are VERY LOW. IE Gas prices are very near doubled. That’s close to 100% NOT the 41% posted. Diesel fuel hit an all time high this past week. It is $5.29 here where its cheaper than a lot of places. this effects EVERY product because most everything is shipped at some point via Truck which uses diesel.

Used cars were up 35%. I do most of the grocery shopping and can assure you that 10% is NOT ACCURATE for food. Hamburger was 3.50 LB Now it is $4.50-$5. That is 30-35%. coffee which was $6 is now $8.50. Thats about 45%. And consider this. the Cost of living index does NOT INCLUDE food, gas & housing. The market dropped bu over 1000 points yesterday. And as we speak the DC politicians spending $33 Billion more of OUR $$$, Not on us though

Google Klaus Schwab, The World Economic forum, The great reset. I suspect what is coming will make 2008 look like a walk in the park. So buckle up folks. We have very few friends in DC. A D or R means nothing They have sold US out

As @nonoise has said

Sounds like a great time to turn the screws some more.

And why not? We do nothing to stop them

Almost everything technology oriented goes down in price. Computers, cell phones, televisions, most audio equipment. Gas goes up and down, thought overall up. Much like any commodity in which usage is increasing. Copper was very very good to me!

but, but, but, every year I get told by my elected officials how they have lowered my taxes....

My property taxes have never gone "down"....always go up....someone already said it, seldom to prices come back down once they have gone up....unless it's on sale, which is rare in the hi-end segment. In fact, it is uncommon to even receive a discount on most hi-end stuff, I tried, the answer is usually, no discount. 

When people can't afford to pay their mortgage, car payments etc. due to inflation and higher interest rates, one of the first things to go is the HIFI system.

Manufacturers and dealers will dump products through grey market dealers enabling them to maintain the facade of charging full retail while not honouring warranties.

I acquired most of my high ticket items during previous market crashes.

It seems to me that it is a Buyer’s Market right now...(For Audio) IMO .

Nobody has extra money to spend on Audio, because of Inflation.

It costs a lot more for the essentials like Gas, Groceries ,your electricity & gas bill.

See below for amount of price increase:

  • Rental cars: 42.9%
  • Gas: 42.1%
  • Used cars: 24.4%
  • Hotels: 18%
  • TVs: 12.7%
  • Furniture: 11.2%
  • Meats, poultry, fish and eggs: 10.5%
  • New cars: 8.7%
  • Appliances: 7.1%
  • Electricity: 5.2%
  • Restaurant prices: 4.7%
  • Rent: 2.9%

Why should price gouging stop with a raise in interest rates? 
Sounds like a great time to turn the screws some more.

the rate increase has nothing to do with audio equipment! mostly on buying homes!! dud!!!

McIntosh and many other pieces of gear in that price range just went up $500 to $1000 per unit.   They have never announced a "price decrease"

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Homes, gear and autos will come down because demand will be down and down significantly with the coming recession.  It’s happening right now folks. We are currently experiencing the initial birth pains. 

No way, with the 6 month wait for most stuff the gouging will go on. With luxury items it's supply and demand .   It will be a while before used prices will come down. New price increases are here to stay.