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Powell hints/suggest there will be no more rate cuts this year

Posted on 5/7/25 at 1:57 pm
Posted by HailHailtoMichigan!
Mission Viejo, CA
Member since Mar 2012
71541 posts
Posted on 5/7/25 at 1:57 pm
Breaking via zerohedge

Lovely
This post was edited on 5/7/25 at 8:08 pm
Posted by Triple Bogey
19th Green
Member since May 2017
6198 posts
Posted on 5/7/25 at 2:02 pm to
They're really going to wait until something completely breaks I guess
Posted by The Boat
Member since Oct 2008
172080 posts
Posted on 5/7/25 at 2:06 pm to
Good, people became used to non-existent rates since 2009. Get people off the teet and suck it up. I like the hysa rates.
Posted by SloaneRanger
Upper Hurstville
Member since Jan 2014
10953 posts
Posted on 5/7/25 at 2:15 pm to
Yet he cut by half a point in the lead up to the election. Hmmm.
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
38660 posts
Posted on 5/7/25 at 2:23 pm to
We just had a solid jobs report and inflation continues to cool. Why cut rates?

Posted by The Boat
Member since Oct 2008
172080 posts
Posted on 5/7/25 at 2:25 pm to
quote:

We just had a solid jobs report and inflation continues to cool. Why cut rates?


People are addicted to cheap debt.
Posted by ItzMe1972
Member since Dec 2013
11497 posts
Posted on 5/7/25 at 2:32 pm to
Posted by notiger1997
Metairie
Member since May 2009
60817 posts
Posted on 5/7/25 at 2:36 pm to
quote:

We just had a solid jobs report and inflation continues to cool. Why cut rates?


Amen
It’s amazing to read on a certain other board how many people know nothing about this and are absolutely convinced that Powell is not cutting just to try and hurt Trump.
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
38660 posts
Posted on 5/7/25 at 2:43 pm to
quote:

It’s amazing to read on a certain other board how many people know nothing about this and are absolutely convinced that Powell is not cutting just to try and hurt Trump.



Some dumbass just claimed over there that powell cut in December 24 after trump was elected to help out Kamala and Biden's q4 numbers...
Posted by fallguy_1978
Best States #50
Member since Feb 2018
51761 posts
Posted on 5/7/25 at 3:23 pm to
quote:

People are addicted to cheap debt.

Exactly - we are at pretty historically normal rates right now.
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
131263 posts
Posted on 5/7/25 at 3:39 pm to
quote:

They're really going to wait until something completely breaks I guess
Considering they're >100BPS above neutral and continuing with QT, it appears the Fed is not passively waiting, but rather more active as to intent.
This post was edited on 5/7/25 at 3:51 pm
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
131263 posts
Posted on 5/7/25 at 3:41 pm to
quote:

historically normal rates
Historically "normal" FOMC rates are 200BPS > inflation?
Posted by ronricks
Member since Mar 2021
9872 posts
Posted on 5/7/25 at 4:09 pm to
quote:

It’s amazing to read on a certain other board how many people know nothing about this and are absolutely convinced that Powell is not cutting just to try and hurt Trump.


Only low iq idiots or low iq real estate agents think this.
Posted by GeauxTigers123
Member since Feb 2007
2439 posts
Posted on 5/7/25 at 4:18 pm to
Somebody explain why mortgage rates have gone up the last few months but my high yield savings rate has gone down?
Posted by slackster
Houston
Member since Mar 2009
89808 posts
Posted on 5/7/25 at 4:19 pm to
quote:

Historically "normal" FOMC rates are 200BPS > inflation?


, yes. Post 1980s inflation the federal funds effective rate ran 400-500bps over CPI for a decade.

Post early 90s recession they ran 300-400bps over CPI until the dot com bubble burst.

The majority of the 70s they were 200-300bps over CPI.

I can’t believe otherwise intelligent people seriously think there is some political motivation behind any of this.
Posted by slackster
Houston
Member since Mar 2009
89808 posts
Posted on 5/7/25 at 4:22 pm to
quote:

Somebody explain why mortgage rates have gone up the last few months but my high yield savings rate has gone down?


Because they’re not really related.

High yield savings are typically based on 90d treasuries, which are very sensitive to the Fed’s actions. Mortgages are based on 10y treasuries, which are not very correlated with the Fed’s overnight rate decisions.
Posted by LSURussian
Member since Feb 2005
131223 posts
Posted on 5/7/25 at 4:34 pm to
quote:

Historically "normal" FOMC rates are 200BPS > inflation?
Pretty close to that, yes.

The difference is we're not accustomed to experiencing 2.6%-2.7% inflation.

When inflation is 1.5%, then a 3.5% FF rate is called for.
Posted by TigerintheNO
New Orleans
Member since Jan 2004
42883 posts
Posted on 5/7/25 at 4:44 pm to
Discover just bumped their one year CD offer to me to 4.25%.
Saw the one year was 4%, went to close out a maturing CD, and they offered a "special" .25% if I renewed today.
Posted by TigersHuskers
Nebraska
Member since Oct 2014
12418 posts
Posted on 5/7/25 at 5:13 pm to
Powell has to go. He's a fricken traitor.
Posted by bstew3006
318
Member since Dec 2007
12763 posts
Posted on 5/7/25 at 5:32 pm to
quote:

Yet he cut by half a point in the lead up to the election. Hmmm.


3 rate cuts
1% cut overall.
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