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The Fed Leaves Fed Funds Rate at 4.5% as Economic Storm Clouds Gather
571 sats \ 9 comments \ @Undisciplined 8 May 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 9 May
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 9 May
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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39 sats \ 3 replies \ @grayruby 9 May
They just don’t know how to follow Canada’s lead.
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50 sats \ 2 replies \ @Undisciplined OP 9 May
May as well use that central bank while you've got it.
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47 sats \ 1 reply \ @grayruby 9 May
Oh we plan to. We have two Central Bankers running the country now.
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60 sats \ 0 replies \ @Rothbardian_fanatic 11 May
I imagine that you will be getting just what the voters asked for when they decided upon Carney. Central bankers are in business only for their masters, those closest to the printing presses. Everybody else can go hang for all they care. When do you think your inflation will go hyper?
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21 sats \ 0 replies \ @Rothbardian_fanatic 11 May
The best thing that the Fed could do with interest rates is let the market determine what they should be. Let people’s time-preferences determine the rate of interest on money. I would be the market clearing rate as well as the rate that would, probably entice more saving and capital investments.
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42 sats \ 0 replies \ @88b0c423eb 9 May
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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0 sats \ 0 replies \ @Coinsreporter 9 May
Is fed funds rate same as we call repo rate here?
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