Inflation is up to 3.1%

Kyle C. Barker

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Why would a rate cut worsen anything? I don’t believe it will, and I also believe a rate cut will
SAVE Trumps economy and that’s why so many people are against it.

Think of the supply/demand curve.


What type of pressure would making money more accessible have on the supply? What type of pressure would it have on the demand?
 

Kyle C. Barker

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Talk to me like I’m stupid. What pressure on what demand? I’m asking honestly, because I don’t understand your question.


Gotcha gotcha.

I was mostly responding to the part where you asked "Why would a rate cut worsen anything".

A rate cut would worsen inflation because of the upward pressure it would put on the demand (I don't see supply changing/increasing in this tarriffs environment)

I know the general mode of operation for decades has been to cut rates when the job market is stagnant. But that's a lot easier to do when you don't have growing inflation at the same time. Then you have the tarriffs which is adding more operating overhead which hurts hiring.
 

Sir Richard Spirit

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Gotcha gotcha.

I was mostly responding to the part where you asked "Why would a rate cut worsen anything".

A rate cut would worsen inflation because of the upward pressure it would put on the demand (I don't see supply changing/increasing in this tarriffs environment)

I thought this is what you were saying but I wanted to be sure.

Inflation is slowing and the job market is weakening. Does that not call for a rate cut? Ops own article points how inflation beat expectations.
 

Kyle C. Barker

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I thought this is what you were saying but I wanted to be sure.

Inflation is slowing and the job market is weakening. Does that not call for a rate cut? Ops own article points how inflation beat expectations.


I'm not too sure if it's slowing. It just grew 0.1% less than what they predicted. It's still at 3.1%. The author of that article put an odd spin on things lol

To put things into perspective, 2% is considered a healthy rate of inflation. That's why most descent jobs that try keep employees give a 3% pay increase every year. That at least beats inflation. We might need a 4% pay increase to not be poorer in 2026.
 

OneManGang

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Why would a rate cut worsen anything? I don’t believe it will, and I also believe a rate cut will
SAVE Trumps economy and that’s why so many people are against it.


Ask these dudes pretending they know about inflation, stagnation, and whatever else tion they want to use, one question: How do you pay for the deficit without cutting interest rates?
Cutting rates makes borrowing easier. People spend more money (they don’t have). Supply dries up. Prices of everything goes up.

You have to increase rates to control spending and inflation and ring every last dollar out the economy as possible without crashing it. Ppl don’t wanna hear that but that’s the only thing that fixes this (if we refuse to tax the rich properly that is)
 

cheek100

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I know bare minimum about the economy. probably just the basic. What do you think will happen if they drop the rates to what trump wants. I’m interested to see what people takes are on it. besides Borrowing being cheaper which is the normally the obvious.
Money becomes accessible. Imagine fighting for high interest rates lol.
 
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