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What I don't understand is how the fed is still contemplating a rate cut when inflation is above the supposed target inflation rate and rising?
They have to do what the president wants, if they want to stay independent.
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That sums it up.
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🤣
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nah nah nah.
Anyone still buys this? Like, Powell was NOT HAPPY about the Trump-y questions. He won't yield to shit
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They want to inflate more and buy off their debt with worthless money.
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Kashkari says a cut is still on the table which means it's 100% happening. You know what to do.
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because it's not rising...? It's hovering slightly above 2:
And rule of thumb is that monetary policy NOW impacts the economy in ~6 to 12 months. So they're skating to where they think the puck will be.
Another reason: when inflation is so close their target, unemployment becomes psychologically and practically more important for them. Anticipations of recession gotta be counter with lower rates.
Welcome to discretionary monetary policy, basically.
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I hate the fed system and hope it ends soon. But these decisions are forced by government deficit spending and the need to roll over our enormous national debt rather than any policy by the fed itself.
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This country is doomed. At least we're all holding the life raft.
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