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re: Do experts on the money board agree with what the feds did today?

Posted on 3/21/24 at 8:47 am to
Posted by UpstairsComputer
Prairieville
Member since Jan 2017
1594 posts
Posted on 3/21/24 at 8:47 am to
I think the pause has been ok, I disagree with the need to cut unless they see something terrible coming other than the government needing to fix their shite. CRE comes to mind.
Posted by RoyalWe
Prairieville, LA
Member since Mar 2018
3210 posts
Posted on 3/21/24 at 8:52 am to
I don't agree with rate cuts right now, and I'm surprised three cuts are still on the table. I'd rather they not speak about a potential number of cuts or increases and say they'll be data-driven. There's nothing wrong with the current interest rate, and historically, it's still low. Unless we see a very clear slowdown, then keep them where they are.
Posted by RoyalWe
Prairieville, LA
Member since Mar 2018
3210 posts
Posted on 3/21/24 at 8:57 am to
quote:

Art Blakey
Nice.
Posted by Art Blakey
Member since Aug 2023
103 posts
Posted on 3/21/24 at 9:40 am to
quote:


Nice.


It's funny because it's true.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
52037 posts
Posted on 3/21/24 at 9:48 am to
quote:

I don't agree with rate cuts right now, and I'm surprised three cuts are still on the table. I'd rather they not speak about a potential number of cuts or increases and say they'll be data-driven. There's nothing wrong with the current interest rate, and historically, it's still low. Unless we see a very clear slowdown, then keep them where they are.



That is Powell trying to play both sides of the fence. He wants the market to keep pursuing "stonks" so he paints a more positive picture than the data indicates but then hides behind saying things can change. The stonks market ignores that last bit to convince itself there are 5 cuts coming this year.

I'm sure the serial downvoter in this thread will disagree.
Posted by SlidellCajun
Slidell la
Member since May 2019
10636 posts
Posted on 3/21/24 at 12:12 pm to
The main bright spot for lowering is that it breathes some money into the system and gives a lift to confidence .

I’ve always been much more hawkish on rates but I can make a case for a modest gradual lowering
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11301 posts
Posted on 3/21/24 at 1:59 pm to
quote:

The main bright spot for lowering is that it breathes some money into the system and gives a lift to confidence .



So when money tightens it breathes money into "the system?"

Posted by SlidellCajun
Slidell la
Member since May 2019
10636 posts
Posted on 3/21/24 at 5:42 pm to
quote:

So when money tightens it breathes money into "the system


When rates lower, more money is injected into the system.
Yes
I’m sure
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
52037 posts
Posted on 3/21/24 at 5:42 pm to
quote:

The main bright spot for lowering is that it breathes some money into the system and gives a lift to confidence.


If inflation is too much currency chasing too few goods, then breathing more money into the system helps create inflation. If inflation is already sticky above 3%, then lowering rates would drive inflation back up.

quote:

I’ve always been much more hawkish on rates but I can make a case for a modest gradual lowering


I can agree with that, but we're nowhere near that time right now. If anything, rates may need to go up another tenth or quarter point.
Posted by Big Scrub TX
Member since Dec 2013
33750 posts
Posted on 3/21/24 at 5:58 pm to
quote:

rates may need to go up another tenth
That seems awfully dialed in.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
52037 posts
Posted on 3/21/24 at 6:47 pm to
quote:

That seems awfully dialed in.


Especially when you cherry-pick it.

Unless we start seeing inflation get back to 4%+, the likelihood of the Fed hiking more than .25 is so slim as to be non-existent. If they were to raise in the current environment, most likely they would just raise it slightly, pause, then re-evaluate.
Posted by SleepyJeaux
Member since Mar 2024
45 posts
Posted on 3/21/24 at 9:57 pm to
It's an election year. You gotta ride this wave until November. All bets are off after the election. Enjoy while it's good. They will prop this baby up until November. $$$$$
Posted by Big Scrub TX
Member since Dec 2013
33750 posts
Posted on 3/22/24 at 12:02 am to
quote:

Unless we start seeing inflation get back to 4%+, the likelihood of the Fed hiking more than .25 is so slim as to be non-existent. If they were to raise in the current environment, most likely they would just raise it slightly, pause, then re-evaluate.
Have they ever raised in an increment less than 25bps?
Posted by TigerDeBaiter
Member since Dec 2010
10277 posts
Posted on 3/22/24 at 12:51 am to
Jay Powell CHOSE RICH!!
Posted by Stoic Poser
South LA
Member since Apr 2023
447 posts
Posted on 3/22/24 at 5:43 am to
Roussel Econ 2035 sucked a big one am I right????
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
52037 posts
Posted on 3/22/24 at 6:08 am to
quote:

Have they ever raised in an increment less than 25bps?


They haven't, but Powell is trying so hard to thread this needle that it wouldn't surprise me to see this proposed.
This post was edited on 3/22/24 at 6:09 am
Posted by TheWalrus
Member since Dec 2012
40960 posts
Posted on 3/22/24 at 7:34 am to
The Feds can suck my wiener
Posted by I Love Bama
Alabama
Member since Nov 2007
37767 posts
Posted on 3/22/24 at 7:35 am to
quote:

Jay Powell CHOSE RICH!


HAHAHAHAHAAH! A fellow twitter bro.
Posted by VolSquatch
First Coast
Member since Sep 2023
2569 posts
Posted on 3/22/24 at 7:44 am to
quote:

What reason is there to cut rates?



Real estate is a pretty big reason to.

Posted by I Love Bama
Alabama
Member since Nov 2007
37767 posts
Posted on 3/22/24 at 7:46 am to
In my opinion, they want real estate to come down.

It's not affordable.

It's significantly over priced compared to every historic metric we have.
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