Simple, because they are 125bps too high and they only have one more shot this year.
100 bps are already baked into the pricing. Oh, and the markets were down all day.
you just cannot see around your trumps fat ass can you?
No inflation last month
- Thread starter Marvin the Martian
- Start date
100 bps are already baked into the pricing. Oh, and the markets were down all day.
you just cannot see around your trumps fat ass can you?
Let's see now.... what was happening 15 years ago? Oh yeah - the economy was in the shitter.
See a psychiatrist about your TDS.
My point wasn't that they went 50 because they were afraid the markets would dip, I simply stated that as a likely outcome if they only went 25 because 100 is already priced in.
Jesus, I just told you - in a post you replied to - that interest rates haven't been lowered 50 basis points in 15 years.
FFS, pay attention.
"huh?"
Evidently you don't. Stop embarrassing yourself with your lack of economic knowledge.
They probably should have cut 25 in July and 25 now. But not really that big of a difference. They still have some more cutting to do to get out of restrictive policy and get into neutral rate territory.
If inflation is back to say 2.5%, a neutral Fed rate is probably 3 to 3.5%.
We're still looking at 4.25-4.5 range by end of this year, which is still rather restrictive. I think they want another several months of inflation data before continuing to ease beyond what they've projected.
You guys are an amazing cult. WTF will you do if/when he loses?
Yes, that was in an emergency because of Covid.
But it makes my point that a 50 basis points cut is because the economy is in trouble.
Do you ever not resort to calling anyone a cult member when they prove you wrong?
S&P Global saying inflation is picking up amid the rate cuts. Manufacturing down, services sector carrying the numbers with wages & slaries rising and lots of uncertainty ahead of the election.
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“The early survey indicators for September point to an economy that continues to grow at a solid pace, albeit with a weakened manufacturing sector and intensifying political uncertainty acting as substantial headwinds. A reacceleration of inflation is meanwhile also signalled, suggesting the Fed cannot totally shift its focus away from its inflation target as it seeks to sustain the economic upturn."
"The survey’s price gauges meanwhile serve as a warning that, despite the PMI indicating a further deterioration of the hiring trend in September, the FOMC may need to move cautiously in implementing further rate cuts. Prices charged for goods and services are both rising at the fastest rates for six months, with input costs in the services sector – a major component of which is wages and salaries – rising at the fastest rate for a year.”
PDF Download
“The early survey indicators for September point to an economy that continues to grow at a solid pace, albeit with a weakened manufacturing sector and intensifying political uncertainty acting as substantial headwinds. A reacceleration of inflation is meanwhile also signalled, suggesting the Fed cannot totally shift its focus away from its inflation target as it seeks to sustain the economic upturn."
"The survey’s price gauges meanwhile serve as a warning that, despite the PMI indicating a further deterioration of the hiring trend in September, the FOMC may need to move cautiously in implementing further rate cuts. Prices charged for goods and services are both rising at the fastest rates for six months, with input costs in the services sector – a major component of which is wages and salaries – rising at the fastest rate for a year.”
Reshoring is happening in plenty of instances. Where it isn't, I'm not sure we want that manufacturing (dirty, low value, hard to automate).
I don't hate the idea, but I think it's another populist card where the majority of the population is too naive to understand.
