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re: Inflation down to 2.3%. Why hasn't the Fed dropped rates?

Posted on 5/29/25 at 1:38 pm to
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
41045 posts
Posted on 5/29/25 at 1:38 pm to
quote:

Maybe it's because I lived through the 80's and 90's when 30 year mortgages hit 15%


The average interest rate in the 90’s was less than 8%.
Posted by Don Quixote
Member since May 2023
4997 posts
Posted on 5/29/25 at 1:39 pm to
quote:

...audit the FED.


more like Eliminate the Fed
Posted by RogerTheShrubber
Juneau, AK
Member since Jan 2009
298927 posts
Posted on 5/29/25 at 1:39 pm to
quote:


Agree but, real estate prices were appreciably lower during that time period.



Mortgages were still incredibly high.


quote:

Typical monthly mortgage payment
2023: $2,270.15
2020: $1,161.32
1981: $771.64
1971: $141.65



Cheap money and Covid stupidity destroyed the market as it currently stands, but even 5 years ago you were better off buying a home than you would have been in 1982.
This post was edited on 5/29/25 at 1:44 pm
Posted by The Torch
DFW The Dub
Member since Aug 2014
29544 posts
Posted on 5/29/25 at 1:43 pm to
Some Judge will veto this and ask Congress to raise inflation back up soon.
Posted by The_Duke
Member since Nov 2016
4376 posts
Posted on 5/29/25 at 1:55 pm to
quote:

Panicans said tariffs would cause massive inflation Guess it’ll be next month before it hits


The tariffs that have been paused twice? This time for 90days, etc etc?

Jesus Christ
Posted by LaMigra
Member since Nov 2022
2766 posts
Posted on 5/29/25 at 2:06 pm to
I’m sure you have google, common sense and your own eyes…..you want a list, look them up yourself
Posted by Big Scrub TX
Member since Dec 2013
39841 posts
Posted on 5/29/25 at 2:26 pm to
quote:

I’m sure you have google, common sense and your own eyes…..you want a list, look them up yourself
Exactly what I thought, you can't answer. Just a mindless NPC talking point you have convinced yourself of.

Even rents are trending down. So energy and rent are going down. That's a lot of other items that need to be inflating in excess of 2.3%.
Posted by LaMigra
Member since Nov 2022
2766 posts
Posted on 5/29/25 at 2:31 pm to
quote:

quote:I’m sure you have google, common sense and your own eyes…..you want a list, look them up yourself Exactly what I thought, you can't answer. Just a mindless NPC talking point you have convinced yourself of. Even rents are trending down. So energy and rent are going down. That's a lot of other items that need to be inflating in excess of 2.3%.



I stand corrected!!

You are right, I went to the grocery today (Whole foods to top it all) and prices were down!
I guess I said that without really thinking what it meant. Prices are still high, YES……but they have gone down!

My apologies!!
Posted by RogerTheShrubber
Juneau, AK
Member since Jan 2009
298927 posts
Posted on 5/29/25 at 2:33 pm to
quote:



Panicans said tariffs would cause massive inflation


Why did Trump fold?

Posted by Blutarsky
112th Congress
Member since Jan 2004
11726 posts
Posted on 5/29/25 at 2:34 pm to
Powell: We believe this is a transitory drop in inflation and we do not want to jump the gun and lower rates.
Posted by Big Scrub TX
Member since Dec 2013
39841 posts
Posted on 5/29/25 at 2:36 pm to
quote:

I stand corrected!!

You are right, I went to the grocery today (Whole foods to top it all) and prices were down!
I guess I said that without really thinking what it meant. Prices are still high, YES……but they have gone down!

My apologies!!
You said INFLATION WAS MUCH HIGHER THAN 2.3%.

I'm asking you an easy question: which basket of goods is PRESENTLY INFLATING AT A RATE GREATER THAN 2.3%.

And you can't answer. In fact, you'll type any clap trap EXCEPT FOR an actual answer.

And you get to vote...
Posted by LaMigra
Member since Nov 2022
2766 posts
Posted on 5/29/25 at 2:38 pm to
quote:

You said INFLATION WAS MUCH HIGHER THAN 2.3%. I'm asking you an easy question: which basket of goods is PRESENTLY INFLATING AT A RATE GREATER THAN 2.3%. And you can't answer. In fact, you'll type any clap trap EXCEPT FOR an actual answer. And you get to vote...


Hey dumbass, what part of you are right did you not understand??
Posted by Big Scrub TX
Member since Dec 2013
39841 posts
Posted on 5/29/25 at 2:44 pm to
quote:

Hey dumbass, what part of you are right did you not understand??
I assumed you were being sarcastic.

Ironic question: which items at Whole Foods have you actually seen go down?
Posted by dgnx6
Member since Feb 2006
89725 posts
Posted on 5/29/25 at 2:48 pm to
quote:

Because dropping rates would cause the economy to burn hot again due to increased demand... Causing increased inflation again...



This only happens if your economy is already burning hot and isn't over leveraged.


All I've heard is how Trump is tanking the economy and people are drowning in debt.


Context is everything.




This post was edited on 5/29/25 at 2:50 pm
Posted by Jay Quest
Once removed from Massachusetts
Member since Nov 2009
10721 posts
Posted on 5/29/25 at 2:55 pm to
quote:

I think if 30 year mortgage rates stay above 6%

I believe that to be a fairly safe bet through 2026.
Posted by Fells
Member since Jul 2015
4361 posts
Posted on 5/29/25 at 3:03 pm to
How many times does JP have to say 2% before you learn that the goal is 2%?
Posted by TheDonald
Washington DC
Member since Dec 2024
546 posts
Posted on 5/29/25 at 3:05 pm to
Because Powell is deep state…and compromised.
Posted by RogerTheShrubber
Juneau, AK
Member since Jan 2009
298927 posts
Posted on 5/29/25 at 3:06 pm to
quote:



This only happens if your economy is already burning hot and isn't over leveraged.


Unemployment is under 5%, inflation 2.3%

We're doing fine right this minute and dont need inflationary pressures.

Posted by charlesmartinmike
North Alabama
Member since Mar 2009
456 posts
Posted on 5/29/25 at 3:13 pm to
What kind of fricking idiot are you. You quoted a guy saying you were right, then wore him out for being wrong. Read better moron.
Posted by Vacherie Saint
Member since Aug 2015
47563 posts
Posted on 5/29/25 at 3:18 pm to
quote:

Why hasn't the Fed dropped rates?


Its not like we need to engineer a quick economic win for the incumbents on the eve of an election or anything important like that.
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