So I was hoping that the Fed wouldn't bend over from cheeto's twitter blitzkreig

[esquared]

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.

 

[Thebobo]

wow just unbelievable. Well not really just horrified by it all.

 

[JSt0rm]

the ultra wealthy want a depression so they can own more on fire sale.

 

[darkswordsman17]

the ultra wealthy want a depression so they can own more on fire sale.

They won't be happy til we really are back to the company town days. That's kinda already happening in many rural areas where most of the major employers have left, leaving one singular one that can dictate everything about the town. I'm talking companies that in those markets easily have more clout than Wal-Mart or anyone (Wal-Mart might employ a few dozen in that town, but these others employ like 400-1000 of the people in a town that is only like 2000-5000 people, where probably 1/5 are retired, 1/5 kids). Even many of the farmers work for those companies while doing farming as a second job.

And when that single major employer is part of a big multi-national (where they can up and move at any moment, effectively killing the town), its especially bad. At least some of the ones I'm talking about, its just in that town where they have such control, and the company was built by local people (although that doesn't stop the greed and corruption), but they can't threaten to just up and leave like no big deal so they have some vested interest in trying to keep the town alive.

 

[Thump553]

The general public doesn't really care because it boosts the economy in the short term and also doesn't have any immediate negative effects to most people (except those few that save).

What worries me-a lot-is that sooner or later we are going to have an economic downturn. If the Fed cuts the rates now that won't have that major tool to stimulate the economy in a downturn. Coupled with the general GOP elimination of safety nets I'm greatly concerned when the downturn occurs the government will have very limited ability to effectively address it-except by expanding the money supply-thus increasing the national debt even worse.

Unfortunately US "business people" are far too used to only thinking short term, and Trump is doing this in spades-he doesn't care about the country, he care about want will get him re-elected.

 

[sandorski]

Throwing Cash from helicopters will be a future government program.

 

[Jhhnn]

The general public doesn't really care because it boosts the economy in the short term and also doesn't have any immediate negative effects to most people (except those few that save).

What worries me-a lot-is that sooner or later we are going to have an economic downturn. If the Fed cuts the rates now that won't have that major tool to stimulate the economy in a downturn. Coupled with the general GOP elimination of safety nets I'm greatly concerned when the downturn occurs the government will have very limited ability to effectively address it-except by expanding the money supply-thus increasing the national debt even worse.

Unfortunately US "business people" are far too used to only thinking short term, and Trump is doing this in spades-he doesn't care about the country, he care about want will get him re-elected.

Shee-it, Sherlock. There's already an enormous credit bubble. There's no gentle let down from that. The longer it stretches out the worse it will be in the end.

 

[JSt0rm]

Shee-it, Sherlock. There's already an enormous credit bubble. There's no gentle let down from that. The longer it stretches out the worse it will be in the end.

credit is credit. How it is paid back is what matters.

 

[DisarmedDespot]

Boost the economy
Democrat gets elected president
Economic correction is more painful due to previous boost
Democrat gets blamed

That's my prediction.

 

[UNCjigga]

Boost the economy
Democrat gets elected president
Economic correction is more painful due to previous boost
Democrat gets blamed

That's my prediction.

Pretty sure they’re banking on:
1) Boost the economy (or at least delay any contraction by 12 months)
2) Trump gets reelected.

 

[Vic]

Remember when Trump & co complained that Obama was printing money for political purposes? Yeah..