Inflation is up to 3.1%

Samori Toure

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Wargames

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How you cutting rates during inflation…..

:snoop:

The tariffs already led to job loss, stagnation, and inflation. All of which equates stagflation.

The only reason to drop rates is so the wealthy can borrow money cheaply, and when the economy crashes buy everything for cheap.
 

phcitywarrior

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Fed should not be touching rates, especially not lowering them right now. It’s bad fiscal policy that will worsen the shyt storm we’re all in.

Just rip the band aid off at this point

Not fiscal policy but monetary policy.

Cutting rates just leads to asset valuation eg stock market and RE which will only drive up inflation.

The real issue is the US’ debt burden. You raise rates to fight inflation and clear a lot of the excess from the markets and you’ll see the stock market tank but also see the US’ debt interest payments increase which squeezes out necessary govt spending.

Rock and a hard place. US is just living on too much debt right now and it will have to be reckoned with sooner rather than later. Kicking the can down the road just delays the inevitable.
 

Samori Toure

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How you cutting rates during inflation…..

:snoop:

The tariffs already led to job loss, stagnation, and inflation. All of which equates stagflation.

The only reason to drop rates is so the wealthy can borrow money cheaply, and when the economy crashes buy everything for cheap.
It is incredibly irresponsible to be cutting rates. They are supposed to be raising rates when inflation rises. They are literally taking financial advice from an dude that filed 6 business bankruptcies.
 

Tres Leches

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Fed should not be touching rates, especially not lowering them right now. It’s bad fiscal policy that will worsen the shyt storm we’re all in.

Just rip the band aid off at this point
wrong unemployment rate is a bigger threat right now but yea they kind of stuck between a rock and a hard place and dummy trump with tariff talk isnt helping :manny:
 

bright black

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Powell added that AI-related investments in data centers, chips, and infrastructure is one of the major drivers of economic growth right now. Still, he emphasized that consumer spending remains the larger force sustaining the economy.

“Consumer spending … is much bigger than that and has been growing,” he said. “It may be mostly higher-end consumers, but consumers are spending. That’s a big chunk of what’s going on in the economy — substantially bigger than AI.”


I wonder how the businesses that sell to non high end consumers are doing?:patrice:
 

Adeptus Astartes

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How you cutting rates during inflation…..

:snoop:

The tariffs already led to job loss, stagnation, and inflation. All of which equates stagflation.

The only reason to drop rates is so the wealthy can borrow money cheaply, and when the economy crashes buy everything for cheap.
That's all this is. Big business gets cheap loans. They sell it as "expanding opportunity and creating new jobs" but it will likely go to other BS.
 

phcitywarrior

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The Fed's dual mandate needs to end. Focus on price stability and call it a day. Employment outcomes should fall on congress, The Fed doesn't have the tools to address unemployment. They can only set short term interest rates which impacts the financial markets less so labor markets.

Fed knows the unemployment #s gonna be shyt... problem is inflation still up so cutting rates at this time is lose lose

Yep, in between a rock and a hard place.

How you cutting rates during inflation…..

:snoop:

The tariffs already led to job loss, stagnation, and inflation. All of which equates stagflation.

The only reason to drop rates is so the wealthy can borrow money cheaply, and when the economy crashes buy everything for cheap.

Yea we won't see any lifts in the labor market. AI and the capex from these massive companies means they have to save on labor costs/run leaner orgs.
 
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