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re: Will the Feds lower rates? Give opinions... the cut is .25

Posted on 9/16/25 at 7:44 pm to
Posted by slackster
Houston
Member since Mar 2009
91320 posts
Posted on 9/16/25 at 7:44 pm to
quote:

I with you on that, but I don't think they will. I purchased 500 contracts on them not.


While I’m sure that was cheap it’s also money lit on fire.
Posted by LP2OP
Member since May 2025
36 posts
Posted on 9/16/25 at 8:02 pm to
I don’t think they will cut either and not doing so will cause a bit of a shakeup to bring September back into line as a generally rough month for a market bull.

But even if they cut 25 bps, does that do anything for the market or will we still see a substantial sell off through the end of the week/month? I get that the comments will round out the picture over the next couple of days, but I’m not optimistic in more than one this year if we get a cut tomorrow.
Posted by bigjoe1
Member since Jan 2024
1479 posts
Posted on 9/16/25 at 8:36 pm to
I think the magnitude of the market reaction will depend on Powell's comments at the press conference.
Could well be a case of buy the rumor sell the fact.
Posted by AUin02
Member since Jan 2012
4529 posts
Posted on 9/17/25 at 8:39 am to
The 25 cut is almost entirely baked into the market at this point it is so expected. Market will move on whether or not comments indicate the likelihood of further cuts this year, or if the Fed does another 50 September cut.
Posted by Victor R Franko
Member since Dec 2021
2187 posts
Posted on 9/17/25 at 9:28 am to
Any knowledge on when annoncment will be made? Today? Tomorrow?
Posted by Pendulum
Member since Jan 2009
7916 posts
Posted on 9/17/25 at 9:32 am to
I think markets drop on the news of the cut actually announced if i had a gun to my head. If they do a .5 cut, I think it'll be significant and you'll see steepening at long end of the curve. (10yr plus would go UP imo)

Basically, stagflation becomes real and not an opinion once the fed resumes cutting. Also cant pass up a good opportunity to leave some bags with retarded retail investors buying for a rate cut bump.
This post was edited on 9/17/25 at 9:35 am
Posted by bayoubengals88
LA
Member since Sep 2007
23479 posts
Posted on 9/17/25 at 9:59 am to
quote:

Any knowledge on when annoncment will be made? Today? Tomorrow?

2:00 PM Eastern today.

Picked up two SPY puts for just a bit of protection.
10/17 $640s
This post was edited on 9/17/25 at 10:08 am
Posted by LP2OP
Member since May 2025
36 posts
Posted on 9/17/25 at 10:17 am to
Right. I bought 5 $652 9/19 Puts a couple of days ago. We’ll see.
Posted by geauxpurple
New Orleans
Member since Jul 2014
16559 posts
Posted on 9/17/25 at 11:01 am to
Yes.
I predict.25 %.
Possibly.50%.
Posted by beaverfever
Arkansas
Member since Jan 2008
35417 posts
Posted on 9/17/25 at 11:04 am to
Things would have to be bad for 50 I think. That would be Powell admitting he had screwed up bigly. 25 keeps the narrative in tact and doesn’t freak anyone out either way.
Posted by Tomatocantender
Boot
Member since Jun 2021
5578 posts
Posted on 9/17/25 at 11:37 am to
quote:

Things would have to be bad for 50 I think.


So the other side of this coin is, Why did Powell lower 50 a month before the election when things were definitely NOT bad in October 2024, no market sell offs, no alarming job numbers, no concrete data pointing to the need for a full 50 etc? Why 50 then but not 50 now with 10 months of no cuts?

A normal and reasonable person can easily conclude that this dog does not hunt especially if the new argument supporting Powell not lowering to 50 is, "but things would need to be bad." Zero consistency in side by side application by Powell.



This post was edited on 9/17/25 at 11:41 am
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
57897 posts
Posted on 9/17/25 at 11:53 am to
quote:

Why did Powell lower 50 a month before the election when things were definitely NOT bad in October 2024, no market sell offs, no alarming job numbers, no concrete data pointing to the need for a full 50 etc?


-There was a lot of debt coming up for refinancing.
-Politics
-Doesn't understand inflation (remember, it was only supposed to be "transitory")
-More worried about job numbers than inflation


Take your pic of any/all of the above.
Posted by BCreed1
Alabama
Member since Jan 2024
6413 posts
Posted on 9/17/25 at 12:54 pm to
quote:

While I’m sure that was cheap


It was. 3 cents per contract
Posted by BCreed1
Alabama
Member since Jan 2024
6413 posts
Posted on 9/17/25 at 1:01 pm to
.25 cut
Posted by Fat Bastard
2024 NFL pick'em champion
Member since Mar 2009
89112 posts
Posted on 9/17/25 at 1:03 pm to
,25 just like i predicted
Posted by DarthRebel
Tier Five is Alive
Member since Feb 2013
24934 posts
Posted on 9/17/25 at 1:09 pm to


Posted by beaverfever
Arkansas
Member since Jan 2008
35417 posts
Posted on 9/17/25 at 1:39 pm to
Why such an emphasis on reducing the fed balance sheet? Seems counterintuitive. Maybe they’re doing it while they think there is liquidity in the market to support it. Idk
Posted by SlidellCajun
Slidell la
Member since May 2019
15984 posts
Posted on 9/17/25 at 3:03 pm to
There certainly isn’t any need to lower to pump air into inflationary or deflationary pressures

If cutting, it’s largely due to pressure to get a lower borrowing rate for government bonds

Posted by goofball
Member since Mar 2015
17337 posts
Posted on 9/17/25 at 4:12 pm to
quote:

Doesn't understand inflation (remember, it was only supposed to be "transitory")


Or there are using different datasets to achieve goals not stated publically.

Could be currency related or...like you said....political.
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