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.
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?
