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Started By
Message
re: rate cut by Feds just announced
Posted on 3/3/20 at 1:56 pm to Janky
Posted on 3/3/20 at 1:56 pm to Janky
Hey smart guy. Powell and 45 are part of the same government... Its clear fed takes cues from the top. And show me the market movement based on 45 speaking. And why is hearing from someone who will change their minds in 5 minutes would be a good thing?. Politics aside it doesn't make economic sense to cut rates on a 3% correction. Unless 1.things are worse than is being told. 2. It's a political move. Which is stupid because in a true market correction 10% or more, they only have 1% cuts left to try to stabilize the market. Or go into negative territory which is third world country shite. The wealthiest country with very smart economists shouldn't be in that situation.
And again the market is at a all time high. Please explain the rate cut to my simple brain.
And again the market is at a all time high. Please explain the rate cut to my simple brain.
3
Posted on 3/3/20 at 2:00 pm to Lawricks33
I'm not smart enough to understand this shite looks to me like the fed might run out of ammo.
Posted on 3/3/20 at 2:04 pm to Lawricks33
The rate cut was not for the recent market action. It is to try and get in front of the upcoming possible economic slowdown due to the virus.
Ha, Trump talking again and the market has come back again.
Posted on 3/3/20 at 2:07 pm to castorinho
That's all the smarts you need! You're correct this move give the fed very little room to do anything else if it get worse.
Posted on 3/3/20 at 2:09 pm to Jjdoc
I thought mortgage rates were mostly affected by the 10-yr Treasury? Do these fed rate cuts affect mortgage rates?
Posted on 3/3/20 at 2:09 pm to Lawricks33
Not saying I agree with the cut just that it wasn't a reaction to the stock market in my opinion.
Posted on 3/3/20 at 2:11 pm to Janky
Well say that! People hate being treated like idiots. The market reacts to how steady the response to crisis is.
And your message will not age well. 45 is not very intelligent. The market will respond to that.
And your message will not age well. 45 is not very intelligent. The market will respond to that.
Posted on 3/3/20 at 2:16 pm to Lawricks33
quote:
45 is not very intelligent.
Pot meet kettle.
quote:
The market will respond to that.
Again, you struggle with separating he market and the economy. You will probably cover than in your next econ class.
Posted on 3/3/20 at 2:35 pm to Janky
The fed looks to the economy as the direction for the market. Don't need class for that. Just common sense
Posted on 3/3/20 at 2:37 pm to Lawricks33
Oh dear.
This post was edited on 3/3/20 at 2:40 pm
Posted on 3/3/20 at 3:19 pm to Jjdoc
A summer cut between 50-100 bps if on the back of poor Q1/Q2 macro data would be reasonable. Doing this now is just the epitome of an own goal.
An incompetent and/or weaponized-for-reelection Fed is a way bigger market concern than COV-19. I'm surprised the indices aren't down more.
An incompetent and/or weaponized-for-reelection Fed is a way bigger market concern than COV-19. I'm surprised the indices aren't down more.
This post was edited on 3/3/20 at 3:40 pm
Posted on 3/3/20 at 3:29 pm to LSUFanHouston
quote:It’s not unprecedented. The Fed has cut rates by 50 bp many times. Raised them by 50bp, too.
On the other hand, we get an unprecedented emergency half-point rate cut.
Posted on 3/3/20 at 3:34 pm to Lawricks33
quote:No, it’s not.
And again the market is at a all time high.
Besides, the Fed’s dual mandate from congress has nothing to do with the stock market.
quote:I don’t think I can simplify it that much. Sorry.
Please explain the rate cut to my simple brain.
Posted on 3/3/20 at 4:17 pm to LSURussian
quote:Any idea as to what role the repo market played in Powell's decision, if any?
LSURussian
Posted on 3/3/20 at 4:21 pm to Jjdoc
We are in for some tough times ahead. I have a feeling it will get ugly. And they won’t be able to play their little interest rate games to prop it up this time.
Posted on 3/3/20 at 4:26 pm to Skeezer
Interest rate cuts inject money into the market. Money gets people to buy, which increases demand
The issue here is we have a loss of supply, not a loss of demand. Cutting interest rates won’t put people back to work if the govt is mandating they stay home, like they have been in China. There’s gonna be a reduced supply for many industries for the short term, and companies will lose value that way
The issue here is we have a loss of supply, not a loss of demand. Cutting interest rates won’t put people back to work if the govt is mandating they stay home, like they have been in China. There’s gonna be a reduced supply for many industries for the short term, and companies will lose value that way
Posted on 3/3/20 at 4:39 pm to NC_Tigah
Nope. I’m in Disney World. 
Posted on 3/3/20 at 4:58 pm to LSURussian
quote:Man, talk about a Mickey Mouse response.
Nope. I’m in Disney World.
Posted on 3/3/20 at 4:59 pm to NC_Tigah
Please don't start with the goofy puns
Posted on 3/3/20 at 5:06 pm to LSURussian
You my friend are writing out of your arse. Duel mandate means what? Nothing. What you need to know is the fed is supposed to ensure the fed funds rate is in line with economic output. There are a couple things they can do in response to economic issues. Raise or lower rates is one. However if the fundamentals don't support that ( THE HIGHEST LEVEL THE MARKET HAS BEEN ) investors will look at the data and react. Hence the response from today. Hopefully it will stabilize but I don't have much confidence in leadership
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