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The Fed Leaves Fed Funds Rate at 4.5% as Economic Storm Clouds Gather
571 sats \ 7 comments \ @Undisciplined 15h econ
Using a discussion style post to get better formatting on the nostr cross-post.
The Fed Leaves Fed Funds Rate at 4.5% as Economic Storm Clouds Gather
by Ryan McMaken
The Fed is now hemmed in by a rising risk of stagflation. It doesn’t know where the economy is headed, or is unwilling to take a position. At this point, “hope for the best” is Fed policy.
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49 sats \ 1 reply \ @metadavid 13h
They’re placed in an impossible situation. As much as Trump wants them to cut rates, tariffs alone are highly likely to trigger inflation, so expanding the money supply would make it worse.
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0 sats \ 0 replies \ @Undisciplined OP 12h
In the price sense, that's right. Although, for a large consumer nation, more of the tax incidence falls on the foreign producers, so it's not as inflationary as the same tariff rate implemented by a small nation.
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42 sats \ 0 replies \ @88b0c423eb 4h
The fed only follows the markets 10y bond is around 4,40% if they cut rates and the market pushes it into 4,80% they would have to follow up and look like what they are...lol
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39 sats \ 2 replies \ @grayruby 14h
They just don’t know how to follow Canada’s lead.
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50 sats \ 1 reply \ @Undisciplined OP 14h
May as well use that central bank while you've got it.
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37 sats \ 0 replies \ @grayruby 14h
Oh we plan to. We have two Central Bankers running the country now.
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0 sats \ 0 replies \ @Coinsreporter 10h
Is fed funds rate same as we call repo rate here?
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