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Get ready for the Fed to make a horrible move cutting rates just to help Joey and Kamala.

Posted on 3/25/24 at 8:35 am
Posted by Timeoday
Easter Island
Member since Aug 2020
8487 posts
Posted on 3/25/24 at 8:35 am
The USA, on the cusp of stagflation, yet Powell wants to keep his job too. With lawfare not working, the Fed will engage to protect the current administration. It is what the Fed does to the American people regardless of the consequences.

After all, Joey and Kamala did get 81,000,000 plus votes in their last election. The bumper stickers are everywhere to prove it as well!!

It's coming ....
Posted by jonnyanony
Member since Nov 2020
9912 posts
Posted on 3/25/24 at 8:37 am to
I wouldn't be shocked at all, but I think it's too late to make much difference by November.
Posted by Bass Tiger
Member since Oct 2014
45994 posts
Posted on 3/25/24 at 8:38 am to
quote:

The USA, on the cusp of stagflation, yet Powell wants to keep his job too. With lawfare not working, the Fed will engage to protect the current administration. It is what the Fed does to the American people regardless of the consequences. After all, Joey and Kamala did get 81,000,000 plus votes in their last election. The bumper stickers are everywhere to prove it as well!! It's coming ....


The rate cuts will be well timed in mid to late summer so further inflation is delayed until after the 2024 GE.
Posted by Longhorn Actual
Member since Dec 2023
905 posts
Posted on 3/25/24 at 8:46 am to
CRE is in a bind with so much debt terming this year and asset values stressed.

Banks with exposure will feel it.

Housing market is affected by interest rates.

They'll lower them (they shouldn't, but they will) to save those two sectors if nothing else.

In other words, you and I suffer the downside consequences when we're not smart with our money. When the big players get overextended, they receive a downside safety net at the expense of the rest of us.
Posted by Longhorn Actual
Member since Dec 2023
905 posts
Posted on 3/25/24 at 8:48 am to
quote:

The rate cuts will be well timed in mid to late summer so further inflation is delayed until after the 2024 GE.



Exactly. The effects of lowering them when they shouldn't won't be felt until after election day.

Once their guy is safely in place, it's back to the pain.

If Trump somehow still wins, then the reignition of inflation will be his fault.
Posted by Mfdtiger
Deatsville, Alabama
Member since Oct 2010
730 posts
Posted on 3/25/24 at 8:51 am to
The election will not affect his job regardless of the outcome. The Fed is controlled by a board of governors that are nominated by the President but serve 14-year terms.
Posted by LSU5508
New Orleans
Member since Nov 2007
3614 posts
Posted on 3/25/24 at 8:55 am to
It’s really too late for the fed to make changes that I’ll have noticeable change. We may see rates tick up or down slightly, but there’s not gonna be enough change were the masses notice big differences. You probably will see an uptick in spending just because it’s tax refund season for a lot of people and the types of people getting those are not really saving them. Of course, Joe will take credit and say the economy is back.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51489 posts
Posted on 3/25/24 at 10:37 am to
Rate hikes generally take a year to permeate through the economy to start really cutting inflation. The majority of hikes (both the number of hikes and the total of increases) were done in 2022. Feb, March, May and July of 2023 saw quarter-point increases as well, but we are over year out from the biggest part of the hikes and a year(ish) out from the first half of those final hikes yet we've seen inflation remain sticky above 3% and now starting to creep back up.

Economic activity usually picks up as we get into Summer so there's no economic reason to expect any cuts (at least at this time) until at least August. If we get cuts before August with inflation still above 3%, there is so much latent demand out there that I believe we would be back around (or above) 4% by election time.

All that said, if we get cuts with inflation still above 3% then it's most likely going to be as an attempt to win voter favor for the current administration.

And it would fail spectacularly.
Posted by TigerAxeOK
Where I lay my head is home.
Member since Dec 2016
24689 posts
Posted on 3/25/24 at 10:49 am to
quote:

Rate hikes generally take a year to permeate through the economy to start really cutting inflation. 

So, should Trump somehow overcome the fraud and actually be reelected, and the economy ultimately improves, this is the framework for the DNXi and Media Narrative Control Apparatus to claim that it was the fraudulently installed Biden administration who actually did it and Trump is just benefitting from Potato Joe's good decisions.

It's the same playbook. Never changes.

When a (R) is in office, "things are only getting better because of what the last Democrat guy did!!!", and when a (D) is in office, "things are only bad now because of what the last Republican guy did!!!!"
Posted by Timeoday
Easter Island
Member since Aug 2020
8487 posts
Posted on 3/25/24 at 10:59 am to
Yep, the control of information is the real power dynamic. How can that be resolved?
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
73338 posts
Posted on 3/25/24 at 11:02 am to
3 cuts are coming

Goolsbee said hes down for 3 cuts today
Bostic said hes in favor of 1 cut

If unemployment hits 4.1 they will cut faster
Posted by TigerAxeOK
Where I lay my head is home.
Member since Dec 2016
24689 posts
Posted on 3/25/24 at 11:34 am to
quote:

Yep, the control of information is the real power dynamic. How can that be resolved?

Don't know.

I do what I can by completely tuning out mainstream news and paying my $4.99/mo subscription to stream the so-far-uncancellable OAN.

That and preaching as often as I can to conservatives I know, that Faux News is controlled opposition that lies to them and fully supports the Establishment Uniparty. They already know that the other outlets are disingenuous propaganda, but for whatever reason they still can't quit Faux News.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51489 posts
Posted on 3/25/24 at 12:01 pm to
quote:

So, should Trump somehow overcome the fraud and actually be reelected, and the economy ultimately improves, this is the framework for the DNXi and Media Narrative Control Apparatus to claim that it was the fraudulently installed Biden administration who actually did it and Trump is just benefitting from Potato Joe's good decisions.


Undoubtedly. They'll have to rely on hacks like Krugman to give that stance any sort of gravitas as anyone paying attention can easily see that the hikes were enough to start bringing inflation down, but not enough to push it below 3% (much less the 2% needed to objectively begin talking about cuts).
Posted by Mid Iowa Tiger
Undisclosed Secure Location
Member since Feb 2008
18590 posts
Posted on 3/25/24 at 12:39 pm to
I’m not that worried. If they were going to cut for political reasons last week would have either been when or at least some signaling it was coming.

Neither happened.
Posted by ole man
Baton Rouge
Member since Nov 2007
11687 posts
Posted on 3/25/24 at 12:42 pm to
Their will be those that think he doing it for us.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 3/25/24 at 12:44 pm to
quote:

the Fed to make a horrible move cutting rates
quote:

The USA, on the cusp of stagflation,
Using your vast and detailed knowledge of monetary economics, please explain why it's a "horrible move" to slowly reduce short term interest rates in the face of being "on the cusp of stagflation." Thanks.
Posted by Timeoday
Easter Island
Member since Aug 2020
8487 posts
Posted on 3/25/24 at 4:29 pm to
quote:

CRE is in a bind with so much debt terming this year and asset values stressed.

Banks with exposure will feel it.

Housing market is affected by interest rates.

They'll lower them (they shouldn't, but they will) to save those two sectors if nothing else.

By the way, the FDIC is essentially guaranteeing over $20 trillion in deposits on just over $100 billion. So they’ve got a half-penny on the dollar. In reality, the FED is in a pickle. Slashing interest rates could staunch the bleeding. But with inflation marching up every month – currently at 5 and a half percent annualized – that’s not going to happen.

STAGFLATION!!

The Meltdown
This post was edited on 3/25/24 at 4:32 pm
Posted by DMAN1968
Member since Apr 2019
10144 posts
Posted on 3/25/24 at 4:41 pm to
quote:

Rate hikes generally take a year to permeate through the economy to start really cutting inflation.

But the stock market will jump.

Easy to campaign on a record high stock market.
Posted by Timeoday
Easter Island
Member since Aug 2020
8487 posts
Posted on 3/25/24 at 4:49 pm to
quote:

But the stock market will jump.

Easy to campaign on a record high stock market.

Maybe POTUS Trump pulls a Ross Perot and brings out the chart to explain what is happening!!
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51489 posts
Posted on 3/25/24 at 5:28 pm to
quote:

But the stock market will jump.

Easy to campaign on a record high stock market.


That would be a big mistake. Consumers are feeling the inflation every day. Biden trying to promote the stock market as "Bidenomics is working" is very likely to face voter backlash as consumers continue to pay more for less.
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