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Get ready for the Fed to make a horrible move cutting rates just to help Joey and Kamala.

Posted on 3/25/24 at 8:35 am
Posted by Timeoday
Easter Island
Member since Aug 2020
11637 posts
Posted on 3/25/24 at 8:35 am
The USA, on the cusp of stagflation, yet Powell wants to keep his job too. With lawfare not working, the Fed will engage to protect the current administration. It is what the Fed does to the American people regardless of the consequences.

After all, Joey and Kamala did get 81,000,000 plus votes in their last election. The bumper stickers are everywhere to prove it as well!!

It's coming ....
Posted by jonnyanony
Member since Nov 2020
11273 posts
Posted on 3/25/24 at 8:37 am to
I wouldn't be shocked at all, but I think it's too late to make much difference by November.
Posted by Bass Tiger
Member since Oct 2014
48358 posts
Posted on 3/25/24 at 8:38 am to
quote:

The USA, on the cusp of stagflation, yet Powell wants to keep his job too. With lawfare not working, the Fed will engage to protect the current administration. It is what the Fed does to the American people regardless of the consequences. After all, Joey and Kamala did get 81,000,000 plus votes in their last election. The bumper stickers are everywhere to prove it as well!! It's coming ....


The rate cuts will be well timed in mid to late summer so further inflation is delayed until after the 2024 GE.
Posted by Longhorn Actual
Member since Dec 2023
1444 posts
Posted on 3/25/24 at 8:46 am to
CRE is in a bind with so much debt terming this year and asset values stressed.

Banks with exposure will feel it.

Housing market is affected by interest rates.

They'll lower them (they shouldn't, but they will) to save those two sectors if nothing else.

In other words, you and I suffer the downside consequences when we're not smart with our money. When the big players get overextended, they receive a downside safety net at the expense of the rest of us.
Posted by Mfdtiger
Deatsville, Alabama
Member since Oct 2010
739 posts
Posted on 3/25/24 at 8:51 am to
The election will not affect his job regardless of the outcome. The Fed is controlled by a board of governors that are nominated by the President but serve 14-year terms.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
52896 posts
Posted on 3/25/24 at 10:37 am to
Rate hikes generally take a year to permeate through the economy to start really cutting inflation. The majority of hikes (both the number of hikes and the total of increases) were done in 2022. Feb, March, May and July of 2023 saw quarter-point increases as well, but we are over year out from the biggest part of the hikes and a year(ish) out from the first half of those final hikes yet we've seen inflation remain sticky above 3% and now starting to creep back up.

Economic activity usually picks up as we get into Summer so there's no economic reason to expect any cuts (at least at this time) until at least August. If we get cuts before August with inflation still above 3%, there is so much latent demand out there that I believe we would be back around (or above) 4% by election time.

All that said, if we get cuts with inflation still above 3% then it's most likely going to be as an attempt to win voter favor for the current administration.

And it would fail spectacularly.
Posted by Mid Iowa Tiger
Undisclosed Secure Location
Member since Feb 2008
19538 posts
Posted on 3/25/24 at 12:39 pm to
I’m not that worried. If they were going to cut for political reasons last week would have either been when or at least some signaling it was coming.

Neither happened.
Posted by ole man
Baton Rouge
Member since Nov 2007
12633 posts
Posted on 3/25/24 at 12:42 pm to
Their will be those that think he doing it for us.
Posted by LSURussian
Member since Feb 2005
128377 posts
Posted on 3/25/24 at 12:44 pm to
quote:

the Fed to make a horrible move cutting rates
quote:

The USA, on the cusp of stagflation,
Using your vast and detailed knowledge of monetary economics, please explain why it's a "horrible move" to slowly reduce short term interest rates in the face of being "on the cusp of stagflation." Thanks.
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