Cut rates after that CPI report? What are these people smoking? Shallow recession? Good God, just do the opposite of these clowns.

Wall Street clearly wants the FED to cut rates. But if the FED does cut rates, inflation will be roaring up, and Powell will be remembered exactly as another Arthur Burns. I think the correct policy is to maintain the current interest rate forever, and actually it is not so clear whether doing this is good enough to control inflation.

@Chad_Max

2 ай бұрын

Unemployment needs to go up before inflation really gets under control. That's the 500lb gorilla in the room....

@ryann8348

2 ай бұрын

Do you want a depression or something?

@emmeadowmitbbs3537

2 ай бұрын

@@ryann8348No. But I think the public did not understand the situation. When we raise interest rates, the supply side got hurt first. That was why our economy was more or less fine this time (because our manufacturing industry has been hollowed out). But now the supply has already been reduced, if we increase demand, the inflation will jump back up quickly. The bottom line is, controlling inflation should be a long and painful process. The public is not ready for the "painful" part. This was exactly why Authur Burns couldn't control inflation in the 1970s. If the FED cuts rate and inflation jumps back up, then they will have to raise rate high enough again, and that will indeed cause depression. Keeping rate at this level forever will be very painful, but it will NOT generate depression.

@NarutoPHC

2 ай бұрын

I agree. Honestly, the Feds should have increased the rates more. You don't need to wait for CPI numbers to tell you inflation. You can see it clearly on a daily especially in groceries.

@justinp9647

2 ай бұрын

@@ryann8348 recessions are a natural aspect of an economy. Your can’t keep kicking it down the road. We need a decent recession asap.

Talks about 18% interest rates for housing as if it’s the same as today - the price of a home during that period was sub 50k housing has increased over 400% since then so even with a 7% interest rate housing prices have far surpassed what even an 18% interest rate at that time did to affordability. Not to mention the supply shortage which keeps prices stuck and still likely to increase - wages have only slightly increased during this period vs when 18% interest rates were a thing. Not the same situation at all

Why would they cut rates if inflation is hot?

@ks19841984

2 ай бұрын

Check the details, it isn’t hot. In fact the bigger risk ahead is deflation

With more inflation, they will have to raise rates in June.

It seems like everyone forgot what happened in 2008, I don't even feel sorry for the bulls buying at the top anymore

@briantep458

2 ай бұрын

economy is not the same as 2008, its much more bifurcated. The top 20% of wealthy Americans contribute to 50% of GDP spending, this is why its hard to have an actual recession (2 consecutive quarter of GDP contraction).

Dont understand when cpi is higher compared to jan,inflation rate fed is looking at is 2%, why would fed cut rate to control inflation rate. Should increase rate hike instead?

They must increase the interest rate.

@eduardomaldonado1647

2 ай бұрын

not a wise decision to raise rates it will crash markets. Better to delay lowering rates.

"Shallow recession." lol. We are doomed. Thank you Yahoo Finance for the update..

Inflation's been rising nonstop since the last interest rate hike back in July. Every CPI report reflects that. Just because the rate of the hikes are lower doesn't mean squat. Not when you're still paying more for basic goods. Powell's going to raise them eventually. Luckily for banks and the market he's conservative so it won't be any higher than 75bps.

Get rid of the Central Bank.

The jobs numbers is skewed. People are literally working more and taking on 2nd or 3rd jobs just to survive and keep up with their standard of living. Does it have to come down to the point of homelessness before they consider giving the population some relief?

March becomes May and then June becomes December and then probably never!

These people are just talking up their books. Cuts are inflationary.

Hi

No rate cuts this year. Inflation going back up. March 2023 only rose .1%. That falls off next reading, so get ready for a 3.5% Inflation read next time. Time to get BEARISH for hawkish Fed soon.

The question is never about “if” but “when” in terms of cutting rates.

@SigFigNewton

2 ай бұрын

Framing it this way encourages people to stay invested

I’m in the camp they cut in March, 2024!! 200 bps

@daleyoung4710

2 ай бұрын

No chance.

@SigFigNewton

2 ай бұрын

Nah, Powell is afraid that if he Burnss, he’ll be forced to Volker

@davidtunstall6454

2 ай бұрын

Haha same, they're going to cut 200+bps in March or April because the banking system is going to collapse.

@briantep458

2 ай бұрын

if you have to aggressively cut 200pts in one meeting, then is seriously wrong with the economy. Markets will have already tanked 15%

Bullshit

Why would they cut rates if inflation is hot?