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May CPI inflation rises to 2.4%, below expectations of 2.5%.

Posted on 6/11/25 at 7:56 am
Posted by stout
Porte du Lafitte
Member since Sep 2006
182295 posts
Posted on 6/11/25 at 7:56 am



We wont see a rate cut anytime soon, SDV
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
98011 posts
Posted on 6/11/25 at 7:59 am to
Why would they cut when inflation is dropping and Too Late embarrassed himself about Tariffs

Oh and when the BLS revisions drop that jobs report next month

Too Late Jerome

quote:

We wont see a rate cut anytime soon, SDV


Sept isnt anytime soon?
This post was edited on 6/11/25 at 8:00 am
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
59248 posts
Posted on 6/11/25 at 8:04 am to
Short version: prices continue to moderate as rates are kept stable and "muh tarrifz" still has yet to materialize.

Unless producers start hammering price (unlikely), we should continue to see a drop in price growth but also the continued slow drop in employment.
Posted by I20goon
about 7mi down a dirt road
Member since Aug 2013
19829 posts
Posted on 6/11/25 at 8:08 am to
quote:

Why would they cut when inflation is dropping and Too Late embarrassed himself about Tariffs
just to be clear... inflation did not drop, it increased. Just not as much as expected.

IMHO, it proves Powell was correct last meeting.

[and we'll limit it to just that one meeting, because yes- he's been consistent in the past. Consistently wrong]
Posted by stout
Porte du Lafitte
Member since Sep 2006
182295 posts
Posted on 6/11/25 at 8:10 am to
quote:

just to be clear... inflation did not drop, it increased. Just not as much as expected.

IMHO, it proves Powell was correct last meeting.



If Powell had cut earlier this year the small rise in inflation would be worse than it is. He was correct. We aren't out of the woods yet and now the BBB is about to create more money out of thin air.
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
98011 posts
Posted on 6/11/25 at 8:12 am to
quote:

just to be clear... inflation did not drop, it increased. Just not as much as expected.


It did drop. Did you see the replacement numbers from last year. It was basically zero. So to have this report show its "cooling" means we are at or below too lates target

And when i say cut rates i dont mean to zero. But what else does the Fed need to cut? Or are they playing politics.
Posted by stout
Porte du Lafitte
Member since Sep 2006
182295 posts
Posted on 6/11/25 at 8:19 am to
Posted by Victor R Franko
Member since Dec 2021
3455 posts
Posted on 6/11/25 at 8:20 am to
The US has to refinance $9.2 trillion on bonds before this year is over. That's one of the big reasons Trump has been requesting rate cuts. Not sure, but I think 1/2 0f 1% on that 9.2 equals $46 billion in interest payments. US total debt is a little over $36 trillion. 1/2 of 1% interest on that equals about $180 billion.
Posted by stout
Porte du Lafitte
Member since Sep 2006
182295 posts
Posted on 6/11/25 at 8:22 am to
quote:


The US has to refinance $9.2 trillion on bonds before this year is over. That's one of the big reasons Trump has been requesting rate cuts. Not sure, but I think 1/2 0f 1% on that 9.2 equals $46 billion in interest payments. US total debt is a little over $36 trillion. 1/2 of 1% interest on that equals about $180 billion.



There is no guarantee that a Federal Reserve rate cut will bring the 10-year yield down.
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
98011 posts
Posted on 6/11/25 at 8:26 am to
Per CNBC
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
59248 posts
Posted on 6/11/25 at 8:48 am to
quote:

The US has to refinance $9.2 trillion on bonds before this year is over. That's one of the big reasons Trump has been requesting rate cuts. Not sure, but I think 1/2 0f 1% on that 9.2 equals $46 billion in interest payments. US total debt is a little over $36 trillion. 1/2 of 1% interest on that equals about $180 billion.


Bond yields are far more of a function of auction tails than EFFR. Tails have averaged slightly higher since COVID and are likely to continue a slow increase as Congress continues to create $1.5T+ deficits (which will likely grow to $2T+ within the next 5 years). I mean, I get the desire to cut servicing costs, but we're pretty much at the point now where we're trying to bail water out of a sinking ship by choosing a bucket with only slightly smaller holes.
Posted by GumboPot
Member since Mar 2009
140573 posts
Posted on 6/11/25 at 9:11 am to
quote:

just to be clear... inflation did not drop, it increased.


Most likely due to spring/summer gasoline blending requirements combined with more travelers. Fuel is always a little more expensive this time of year.

Posted by Upperaltiger06
North Alabama
Member since Feb 2012
4230 posts
Posted on 6/11/25 at 9:25 am to
Rates and inflation are inversely related. We need to keep them where they are at. They are still historically low.
Posted by Figgy
CenCal
Member since May 2020
10344 posts
Posted on 6/11/25 at 9:27 am to
I’ve been saying that early summer was when the price increases were coming. I shared supplier emails telling everyone so. companies had to burn through inventories and the tariffs would lag. We’re getting to the point where the tariffed products will begin to hit the both the consumer and businesses.
Posted by RogerTheShrubber
Juneau, AK
Member since Jan 2009
299341 posts
Posted on 6/11/25 at 9:29 am to
quote:

I shared supplier emails telling everyone so. companies had to burn through inventories and the tariffs would lag.


We might see the old stagflation occur again.
Posted by jrobic4
Baton Rouge
Member since Aug 2011
13252 posts
Posted on 6/11/25 at 9:49 am to
"See, we don't need a rate cut!" --board idiots
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
98011 posts
Posted on 6/11/25 at 9:50 am to
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