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Fed cuts by a quarter point, indicates fewer reductions ahead

Posted on 12/18/24 at 1:14 pm
Posted by loogaroo
Welsh
Member since Dec 2005
41983 posts
Posted on 12/18/24 at 1:14 pm
It's just comical. Have to laugh not to cry.

quote:

WASHINGTON – The Federal Reserve on Wednesday lowered its key interest rate by a quarter percentage point, the third consecutive reduction and one that came with a cautionary tone about additional reductions in coming years.

In a move widely anticipated by markets, the Federal Open Market Committee cut its overnight borrowing rate to a target range of 4.25%-4.5%, back to the level where it was in December 2022 when rates were on the move higher.


https://www.cnbc.com/2024/12/18/fed-rate-decision-december-2024-.html
Posted by GumboPot
Member since Mar 2009
140573 posts
Posted on 12/18/24 at 1:16 pm to
quote:

Fed cuts by a quarter point, indicates fewer reductions ahead


Likely means more "easing" (aka, bond buying, printing, etc.)
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
97721 posts
Posted on 12/18/24 at 1:17 pm to
Once shelter catches up in Jan i can see it speeding back up
Posted by TDFreak
Coast to Coast - L.A. to Chicago
Member since Dec 2009
9251 posts
Posted on 12/18/24 at 1:18 pm to
They just can’t stand to see Trump succeed.

Look, I know they’ll have a hundred reasons under the sun why they made this move regarding fewer future rate cuts, but subconsciously it’s their disdain for DJT.
Posted by Knuckle Checker
Member since Jan 2019
677 posts
Posted on 12/18/24 at 1:18 pm to
They are trying to get the economy to hold on just enough to pass the grenade to trump.

My suspicion is that they won’t try another Covid. This time it will be catastrophic economic collapse. And they will blame it on trumps tariffs, even though this has been brewing since Bush.
Posted by loogaroo
Welsh
Member since Dec 2005
41983 posts
Posted on 12/18/24 at 1:19 pm to
quote:

They are trying to get the economy to hold on just enough to pass the grenade to trump.


100%
Posted by GumboPot
Member since Mar 2009
140573 posts
Posted on 12/18/24 at 1:23 pm to
quote:

My suspicion is that they won’t try another Covid. This time it will be catastrophic economic collapse


What's going to trigger this? Commercial real estate?

In what sector of the economy is the market balance located to trigger a catastrophic economic collapse? Not saying it won't happen. Just trying to identify the market imbalance to prepare accordingly.
Posted by Green Chili Tiger
Lurking the Tin Foil Hat Board
Member since Jul 2009
50732 posts
Posted on 12/18/24 at 1:25 pm to
quote:

It's just comical. Have to laugh not to cry.


Are you upset about the rate cut or the lack of future rate cuts?
Posted by loogaroo
Welsh
Member since Dec 2005
41983 posts
Posted on 12/18/24 at 1:26 pm to
quote:

Are you upset about the rate cut or the lack of future rate cuts?


The rate cut
Posted by Sweep Da Leg
Member since Sep 2013
3376 posts
Posted on 12/18/24 at 1:26 pm to
quote:

Are you upset about the rate cut or the lack of future rate cuts?


If you have to ask you should sit this one out
Posted by Bunk Moreland
Member since Dec 2010
68096 posts
Posted on 12/18/24 at 1:26 pm to
Can Powell just basically say in a few months, inflation is terrible, I am going full Volcker? What would stop him?
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
476014 posts
Posted on 12/18/24 at 1:27 pm to
Unemployment is the variable. Once that increases, the first domino is going to be one of these categories (and primarily the impact on the banking system the crash will cause):

1. Consumer debt/CCs
2. Residential RE
3. Commercial RE
4. Auto loans


Posted by Knuckle Checker
Member since Jan 2019
677 posts
Posted on 12/18/24 at 1:28 pm to
quote:

In what sector of the economy is the market balance located to trigger a catastrophic economic collapse?


All of it IMO

We haven’t seen the complete effects of inflation and the inflation is still ongoing.


Housing market is shite
Highest personal debts on record
Budget deficits out of control


It’s waiting on a pinprick to deflate


You don’t have to trust me, just look what Warren Buffett is doing.
Posted by Thib-a-doe Tiger
Member since Nov 2012
36747 posts
Posted on 12/18/24 at 1:31 pm to
quote:

Unemployment is the variable. Once that increases, the first domino is going to be one of these categories (and primarily the impact on the banking system the crash will cause):

1. Consumer debt/CCs
2. Residential RE
3. Commercial RE
4. Auto loans





Wow, way to narrow it down to essentially every kind of debt imagineable. Much insight, real smart
Posted by bayoudude
Member since Dec 2007
25905 posts
Posted on 12/18/24 at 1:33 pm to
They should have never lowered the rates if anything they have been way too low.
This post was edited on 12/18/24 at 1:37 pm
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
476014 posts
Posted on 12/18/24 at 1:35 pm to
quote:

Wow, way to narrow it down to essentially every kind of debt imagineable. Much insight, real smart


The bubble has been building for 16 years now. Nobody can predict which one of those 4 bursts first, but the others may follow quickly thereafter.
Posted by Longhorn Actual
Member since Dec 2023
3177 posts
Posted on 12/18/24 at 2:23 pm to
quote:

Can Powell just basically say in a few months, inflation is terrible, I am going full Volcker? What would stop him?


Fiscal policy and Monetary policy cannot be dominant at the same time.

Fiscal Dominance can always force Monetary policy to go passive/accommodative.

Monetary Dominance cannot do the same to Fiscal policy.

I’m not going to rewrite my previous posts on it, but they’re there for the reading if you want.
Posted by ManBearSharkReb
Member since Dec 2018
6064 posts
Posted on 12/18/24 at 2:29 pm to
Stick to law, retard.
Posted by Zach
Gizmonic Institute
Member since May 2005
117477 posts
Posted on 12/18/24 at 2:29 pm to
quote:

My suspicion is that they won’t try another Covid.

It's gonna be bird flu. The first death was announced yesterday. Victim was from Louisiana. It's gonna be bad because bird are everywhere and bird masks are hard to find. You better get your shots today!
Posted by 4x4tiger
Louisiana
Member since Feb 2006
5769 posts
Posted on 12/18/24 at 2:36 pm to
quote:

Fed cuts by a quarter point, indicates fewer reductions ahead


Reckless. Rates should be a lot higher right now. Probably around 10-12%. Still too much money supply
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