- Oct 8, 2000
- 23,649
- 4,854
- 146
But it appears I was wrong. Powell seems like he's fallen for the twitter abuse from the orange orangutan
The Fed Is Spiking the Punch Bowl. It May Not End Pretty.
https://www.barrons.com/articles/th...d-pretty-51562977914?siteid=yhoof2&yptr=yahoo
The economy seems to be going fine. Unemployment is very low. Inflation is about 2%
The Fed rates rates are still historically low. (2.25-2.5%). No reason to cut the rates. As a matter of fact,
we were due for a couple more rate increases this year, so the fed rate would be around 3%,
which is still way below the Bush II years.
Now Powell seems to want to keep cheeto happy with this rate cut. In fact, from this Barron article
the financial guys put odds that we get three rate cuts this year. So if rates go to 1.5%, what tools to we have in the bag
when the recession comes? Lowering the rates was always a good stimulus to shorten the time of recession.
But Powell will be using this ammunition to extend the economy's growth, when the economy is actually doing fine.
Cheeto equates the economy with the stock market so fuck everything else.
"Joe Carson, AllianceBernstein’s former chief economist and a longtime friend of Barron’s, writes that the Fed has never
made a preemptive move to stave off a slowdown while the economy’s performance has been so close to its expectations
or when the financial markets have been so robust. "
The savers in the US are taking this in the shorts, and have been for awhile. The best interest rates are/were a little over 2%
and CDs are maybe 3% if you tie up your money for 5 years.
The Fed Is Spiking the Punch Bowl. It May Not End Pretty.
https://www.barrons.com/articles/th...d-pretty-51562977914?siteid=yhoof2&yptr=yahoo
The economy seems to be going fine. Unemployment is very low. Inflation is about 2%
The Fed rates rates are still historically low. (2.25-2.5%). No reason to cut the rates. As a matter of fact,
we were due for a couple more rate increases this year, so the fed rate would be around 3%,
which is still way below the Bush II years.
Now Powell seems to want to keep cheeto happy with this rate cut. In fact, from this Barron article
the financial guys put odds that we get three rate cuts this year. So if rates go to 1.5%, what tools to we have in the bag
when the recession comes? Lowering the rates was always a good stimulus to shorten the time of recession.
But Powell will be using this ammunition to extend the economy's growth, when the economy is actually doing fine.
Cheeto equates the economy with the stock market so fuck everything else.
"Joe Carson, AllianceBernstein’s former chief economist and a longtime friend of Barron’s, writes that the Fed has never
made a preemptive move to stave off a slowdown while the economy’s performance has been so close to its expectations
or when the financial markets have been so robust. "
The savers in the US are taking this in the shorts, and have been for awhile. The best interest rates are/were a little over 2%
and CDs are maybe 3% if you tie up your money for 5 years.