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re: Powell asked if the Fed will intervene if the stock market plummets?

Posted on 4/18/25 at 10:51 am to
Posted by Flick007
Member since Dec 2023
84 posts
Posted on 4/18/25 at 10:51 am to
Why would Powell intervene? That would be awful. He needs to remain level headed and not reactionary,
This post was edited on 4/18/25 at 1:04 pm
Posted by Artificial Ignorance
Member since Feb 2025
286 posts
Posted on 4/18/25 at 2:39 pm to
quote:

Powell needs to cut rates and stop playing politics


Tariffs put the Fed in pickle.

Tariffs leading to recession. Time to cut rates. However, bond market driving rates up because of said Tariffs.

Schizophrenia case for Fed.

Trump gets something permanent in return for temp tariffs or threat of tariffs, good. Trump pumps sustained Tariffs, fire him and his economic advisors.


Posted by LSURussian
Member since Feb 2005
130730 posts
Posted on 4/18/25 at 2:58 pm to
quote:

Record inflation is relative and context-specific, while highest inflation ever is an absolute historical maximum.


Posted by redneck hippie
Stillwater
Member since Dec 2008
5983 posts
Posted on 4/18/25 at 3:40 pm to
quote:

The circle jerk eventually gets so boring that they branch out to other boards, usually only to go back to the circle jerk to circle jerk about how stupid/liberal/TDS the other boards are


It’s to the point the mods should step in. There are three or four posters on the PT board that ruin every thread they post in. And unfortunately they live on there 24/7.
I tend to think less moderation is better, but if we have to be moderated the moderators should at least enforce the rules and keep the riff raff out
Posted by LSU0358
Member since Jan 2005
8022 posts
Posted on 4/19/25 at 7:57 am to
quote:

Powell needs to cut rates and stop playing politics


The Fed isn't using some magical formula or testing the political winds to adjust rates. It's simple, if the Fed Rate range is 0.5 to 0.75% away from the 1 yr note the Fed adjust rates. On Thursday the 1 yr closed at 3.98 with Fed rate of 4.25 to 4.5. No cuts. If the one yr drops to 3.75 or lower the Fed will cut.

If Trump could manage to put out a clear message on tariff plans the one year will come down (as it had started to do in early April) and Fed will cut. Uncertainty in the bond markets pushes up interest rates. Trump is causing the uncertainty right now, not Powell.
Posted by ricker300
Birmingham
Member since Jul 2007
359 posts
Posted on 4/19/25 at 8:53 am to
Powell will cut rates in May after the Spy crashes to 450.
Posted by TxTiger82
Member since Sep 2004
34312 posts
Posted on 4/19/25 at 10:23 am to
Trump rushed into the tariff plan while making big assumptions about how Powell would respond. He apparently did not consider the possibility that bond vigilantes and foreign countries would dump bonds and drive up his precious 10-year rate. He did not consider the possibility that China would play hardball. Oops. Quite the corner he’s painted himself into.

Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
86945 posts
Posted on 4/19/25 at 11:43 am to
quote:

Trump rushed into the tariff plan while making big assumptions about how Powell would respond. He apparently did not consider the possibility that bond vigilantes and foreign countries would dump bonds and drive up his precious 10-year rate. He did not consider the possibility that China would play hardball. Oops. Quite the corner he’s painted himself into.



Yet bonds are up and the 10yr went down
Posted by LSURussian
Member since Feb 2005
130730 posts
Posted on 4/19/25 at 11:54 am to
quote:

Yet bonds are up and the 10yr went down
Only AFTER POTUS watered down his tariffs.

Before he did that the price of the 10 year T-bond was in a free fall.

You just can't tell the truth...
Posted by TxTiger82
Member since Sep 2004
34312 posts
Posted on 4/19/25 at 1:09 pm to
The 10yr yield is down from the local peak, but up since liberation day.

Apr 2 close was 4.19.
Current is 4.33.

Thus, the 10yr yield is not “down.” Moreover, one bad move in negotiations sends the thing over 4.50 again.
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