I'm pretty shocked it wasn't cut given how the economy isn't falling apart like has long been said. The labor market is in good shape, inflation didn't come like everyone said, and the economy kept growing.
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192 sats \ 10 replies \ @Undisciplined 30 Jul
I don’t understand why they’d cut when inflation is still above target and the labor market is doing fine and the economy is growing.
Why do stimulus under these conditions?
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42 sats \ 8 replies \ @Cje95 OP 30 Jul
Cause realistically we aren't getting 2% inflation ever again. For a couple of years now the Hill had operated like it was going to be 3% in the future so anything under that is great.
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0 sats \ 7 replies \ @Undisciplined 31 Jul
It seems like you're looking for a reason to cut rates, which is backwards to how monetary policy supposedly works, which is responding to economic conditions.
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42 sats \ 6 replies \ @Cje95 OP 31 Jul
The entire monetary policy is based on the Feds idea of 2% inflation. It isn't happening. Congress, the Admin, everyone for years now has operated in a 3% rate idea. Well 3% has been achieved.
What Powell is doing is wrecking us on our debt with our Treasuries. He cuts it 25-50 basis points the US saves billions. The economy is healthy unlike what everyone thought so cut it. We could easily move back to 3% rates and be fine.
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0 sats \ 5 replies \ @Undisciplined 31 Jul
If the economy is healthy, then cuts will be highly inflationary and we're already way over target. Now, it might be that inflation has been coming down because the economy is actually pretty weak and lower rates will just offset further inflation declines.
People act like there's not much difference between 2% and 3% inflation, but we're 50% over target at 3%. It's the difference between prices doubling every 36 years and prices doubling every 24.
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42 sats \ 4 replies \ @Cje95 OP 31 Jul
I'm not sure how else to say it but no one in Washington DC actually thinks 2% is going to happen. I've talked about this here since I joined SN its a talking point but no one thinks its possible not in today's day and age with everything that has gone on the last 4 years.
Now should rates go to 0 again? No but clearly when looking at historical trends we are on the high side and could easily start moving back to 3.
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52 sats \ 0 replies \ @nichro 30 Jul
Make stock market go up faster so govt can say "Look stock market up faster!"
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0 sats \ 1 reply \ @AngryMulbear 30 Jul
Here come the unhinged comments from Trump!
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0 sats \ 0 replies \ @Cje95 OP 30 Jul
Are they unhinged if he is right? Powell has done a terrible job and both sides have spoken at length about it. The guy is always several steps behind.
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