Finger On the Scale?
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wrote on 19 Sept 2024, 01:42 last edited by Jolly
Is the Fed rate cut politically motivated?
Biggest cut in 16 years...
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wrote on 19 Sept 2024, 02:03 last edited by
It didn't appreciably move the market, so I wouldn't worry too much about it.
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wrote on 19 Sept 2024, 02:23 last edited by
The market had baked it in since the last inflation numbers came out. Though there was some debate over 1/4 pt vs 1/2.
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wrote on 19 Sept 2024, 02:27 last edited by jon-nyc
Re the 16 year thing….
It’s been since the housing bubble that we had a federal funds rate high enough for a half point decrease to be feasible.
When the federal funds rate is, say, 1.0, a 0.5 cut is inconceivable
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wrote on 19 Sept 2024, 02:28 last edited by
looking forward to someday refinancing.
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wrote on 19 Sept 2024, 02:28 last edited by
1/4 is defendable. 1/2 seems like a lot, especially in light of the unemployment numbers.
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wrote on 19 Sept 2024, 02:30 last edited by
Are you saying the unemployment numbers are good?
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wrote on 19 Sept 2024, 02:39 last edited by
No, I'm saying that the numbers aren't good, especially in manufacturing. But by over juicing the economy by cutting rates too fast, are we risking inflation/recession, ultimately leading to even worse unemployment numbers?
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wrote on 19 Sept 2024, 02:43 last edited by
His (Powell’s) view is that inflation has been tamed, so the other goal of unemployment reduction can be prioritized.
“Our patient approach over the past year has paid dividends,” Jerome H. Powell, the Fed chair, said during his news conference. But now “the upside risks to inflation have diminished, and the downside risks to unemployment have increased.”