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

What reason is there to cut rates?

Inflation targets not in sight
Stocks near ATH
Crypto Mooning
Healthy unemployment rate

The ONLY reason they NEED to cur rates is because the government won't stop spending money and we can't afford the debt payments.

How long can we kick this can down the road? Who the hell knows.

For the reasons you listed, why wouldn't you increase rates? I feel like they need to go higher. I mean we are in an historical average interest rate territory with an inflated money supply/economy.

They should never projected a 3 cut scenario to the public. Only bad can come from it.

The fed is in a bind for sure - MMT is being proven wrong nowadays. There is so much political pressure to not raise rates.

Today’s rates are below historical average - we just got drunk on ultra low rates for a long period of time and now have to face reality.


It will crash at some point though. The debt level is simply too much.

Yep, short term pain would be better for everyone in the long run but they are too scared to do it.

I don’t really have a problem except that they keep talking about it and it creates a wait and see scenario which hurts some industries like auto and real estate

People are just waiting for the rate drops to start coming before they buy and it’s created a freeze on the current real estate and auto market

I just wish they’d stop talking about lowering and either do it now or just stfu

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There’s an election this fall

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And then it's time to start campaigning for the most important election in our lifetimes, 2026. Repeat.

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Pausing rate increases and then cut rates later this year? I'm curious to your opinions.

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I've said for a while now that we needed another hike back in Q4, the continued rise in CPI and PPI only strengthen my belief in that. That said, a pause isn't exactly horrible right now but I would have rather heard a warning of a possible hike this year rather than more attempts at promising cuts.

Latent demand and excess liquidity has continued to keep inflation sticky above 3%. Economic activity usually picks up as we get into Spring and Summer so there's no reason to expect inflation to fall below 3% anytime soon. That makes the continued language about 3 cuts this year even more unreasonable as it would mean cramming them into 6 months (or less). The amount of latent Demand we are seeing doesn't just disappear, so cutting rates too soon risks bringing back inflation (see: 1970s inflation).

Understand this: rates aren't cut because the economy is good, rates are cut because the economy is seen to be slowing down. If you're cutting rates 3 times in a year, that means your economy is slowing quite a bit. If it's going to be 3 cuts within 6 months (ranging from 1.25 to .75 between June and December), you're effectively saying you are trying to stave off a recession.

Along with that, rates aren't cut if inflation is staying well above the targeted 2% mark nor going up, rates are cut if inflation is nearing 2% or dropping below.

We've been seeing both strong GDP growth and inflation staying stalled above 3% (much less the 2% target). Inflation has doggedly refused to go to 3% or below since it finally dropped below 4% in June of last year. There is very little right now that looks to change any of this into conditions more favorable for rate cuts by June. At this point I'm starting to write off any chance of a cut over the summer and am looking at September for the earliest chance. This, of course, means that as the number of instances of cuts for 2024 also drives down the depth of those cuts. 

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I don’t think they are worried about your debt.

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Of course they don't.

To be clear, I feel like I'm being deviously taxed in a non-transparent way with representation. I just threw a box of Nestle's tea into my pond.

Yes they are saying rate cuts are coming but I don't agree with it and my question was do others agree with it