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re: Trump says rate cuts are a litmus test for new Fed Chairman

Posted on 12/10/25 at 9:01 am to
Posted by dewster
Chicago
Member since Aug 2006
26407 posts
Posted on 12/10/25 at 9:01 am to
quote:

Powell and this Fed have been God awful ... repeatedly.


How can you make that judgment? Their performance was all just transitory.
Posted by BCvol
Member since Jan 2022
165 posts
Posted on 12/10/25 at 9:46 am to
If you really feel that way there's plenty of options out there that would insulate you from your fears. I worry about the future too, but we can't stop progress. The pc and fax machine did in fact eliminated some jobs, Factory robots have been around for decades, and I have firsthand knowledge of the jobs they have eliminated. I adapted rather than cower in fear.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
57895 posts
Posted on 12/10/25 at 10:12 am to
quote:

We are going to get 15% inflation.


I mentioned in a thread on Poli that something to watch for will be whenever the Fed starts softening its stance on 2% being the inflation target. If we start seeing more generalized positioning like "in the 2% range" or "2% to 2.5%)" or "around 2%," that's going to be admitting "we no longer have the ability to hold inflation back."

But keep on with the $2T+ deficits, Congress.
Posted by MrJimBeam
Member since Apr 2009
12961 posts
Posted on 12/10/25 at 10:34 am to
quote:

It's making layoffs more efficient which is causing hyperstagflation and oh by the way it will make it hyper expensive to get electricity to your house. I hope it was worth it



Hope what was worth what? Do you have any clue what you are babbling about?
Posted by Pimphand
Member since Sep 2021
4030 posts
Posted on 12/10/25 at 10:42 am to
I mean I'm working on stochastic computing so we can reduce power requirements going forwards so we delay driving off the cliff. I know nothing can stop the freight train of death but be careful what you wish for.
Posted by Pimphand
Member since Sep 2021
4030 posts
Posted on 12/10/25 at 10:43 am to
quote:

Hope what was worth what? Do you have any clue what you are babbling about?


That making your life easier and society dumber that enjoy your surveillance prison which will drastically increase your cost of living all while stripping you of jobs.
Posted by cgrand
HAMMOND
Member since Oct 2009
46556 posts
Posted on 12/10/25 at 10:51 am to
we are veering into the philosophical here, but...business processes are going to be automated. that has been the case since the industrial revolution, there is no stopping it and i guess you can describe that fact as the natural order of things. the step being taken now, for which we are so very early, is the introduction of machine minds to do the automating. in the most optimistic view, that will free humanity to explore the creative and abandon the monotonous. there will be mass casualties due to this, just like there were mass casualties at every societal revolution in the past. the order of things is agnostic, it does not and cannot protect the well being of every individual. it remains up to the individual to protect himself.

you are correct that the dumbing down we see now is troubling but that is surface level. there are far more people on this planet than is currently required and will be required in the future. again, the natural order of things. look to darwin for a peek at the future

back to the fed now
Posted by cgrand
HAMMOND
Member since Oct 2009
46556 posts
Posted on 12/10/25 at 11:11 am to
quote:

I mean I'm working on stochastic computing so we can reduce power requirements going forwards
innovation driving invention
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
135550 posts
Posted on 12/10/25 at 11:38 am to
quote:

If we start seeing more generalized positioning like "in the 2% range" or "2% to 2.5%)" or "around 2%,
Are you aware of the origin of and/or rationale for the "2%" target? Most people aren't.

quote:

But keep on with the $2T+ deficits, Congress.
Debt and deficit financing are the real dangers IMO. Unfortunately at these levels, inflating our way out of the debt (aka devaluing the debt) is no longer a player. Ironically now, cost of financing the debt, even more so than consumer protection, is the driver for inflation control.
This post was edited on 12/10/25 at 11:45 am
Posted by BCvol
Member since Jan 2022
165 posts
Posted on 12/10/25 at 11:41 am to
You are making a strong argument that deflation could be on the way.
Posted by cgrand
HAMMOND
Member since Oct 2009
46556 posts
Posted on 12/10/25 at 1:14 pm to
THE FED CUT RATES BY 25 BASIS POINTS

Key takeaways:
• Growth “moderate,” jobs slowing, inflation still elevated
• Dot plot: 1 cut in 2026, 1 cut in 2027, 0 cuts in 2028
• Vote split 9–3 (Miran wanted 50 bps & Goolsbee/Schmid wanted no cut)
Posted by cgrand
HAMMOND
Member since Oct 2009
46556 posts
Posted on 12/10/25 at 1:29 pm to
and...adding to the balance sheet. QE is baaaaack

• Fed will begin Treasury bill purchases on Dec 12
• Fed to buy $40B in T-bills over the next 30 days
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
57895 posts
Posted on 12/10/25 at 3:12 pm to
quote:

Are you aware of the origin of and/or rationale for the "2%" target? Most people aren't.


Wasn't it some Kiwi pulling a random number out of his arse during an interview?
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
93415 posts
Posted on 12/10/25 at 3:16 pm to
quote:

Wasn't it some Kiwi pulling a random number out of his arse during an interview?


Yes it was a made up number

So if they shift to 2.5% who would even care

Keep cutting Fed
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
57895 posts
Posted on 12/10/25 at 3:25 pm to
quote:

So if they shift to 2.5% who would even care


Eventually everyone.

The federal government has spent decades building up reasons for why they say it needs to be no higher than 2%. If they move that number up, it's going to be only because they've realized they've lost control. Inflation with no regulating mechanism and an active money printer ends only one way:

This post was edited on 12/10/25 at 3:28 pm
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
93415 posts
Posted on 12/10/25 at 3:37 pm to
quote:

Eventually everyone.


I doubt it


quote:

The federal government has spent decades building up reasons for why they say it needs to be no higher than 2%. If they move that number up, it's going to be only because they've realized they've lost control. 


Sure jan gif
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
135550 posts
Posted on 12/10/25 at 4:38 pm to
quote:

Wasn't it some Kiwi pulling a random number out of his arse during an interview?
Yep.

Now it's like the 11th Commandment





Posted by Bard
Definitely NOT an admin
Member since Oct 2008
57895 posts
Posted on 12/10/25 at 4:41 pm to
quote:

Sure jan gif


Explain what you disagree with and why.
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
135550 posts
Posted on 12/10/25 at 4:56 pm to
quote:

Explain what you disagree with and why.
I don't know that I disagree. However, what in the world dictates the inflation target rate should be 2% in a Fiat economy with a $40T debt, and $2T deficits?

Posted by Skervix
Member since Aug 2018
219 posts
Posted on 12/10/25 at 5:10 pm to
You lost me at Newsmax
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