UNI88 wrote: ↑Fri Sep 20, 2024 8:54 am
Caribbean Hen wrote: ↑Fri Sep 20, 2024 8:40 am
Well Jerome is already working for Joey
No reason for a 50 point basis cut yesterday, unless the economy is doing a lot worse than what they were saying and we all know that it is
What's it like to see conspiracies everywhere?
There is a big difference between a President attempting to influence the Fed and the Fed actually reporting to the President. The latter would be disastrous for the US economy.
I think a 50 point drop was too much as well but 25 was appropriate.
I agree and disagree. 50 bps definitely way too much of a swing. Last 4 Fed did 50 bps cuts
2001 (recession).
2007 (about to hit recession).
March 2020 (Covid).
Sept 2024 (Before an election).
If they aren’t cutting it because of a looming or current recession, then why? The only other logical answer is the election. That’s not tinfoil hat conspiracy.
A 25 bps cut wouldn’t have raised any red flags, and is what most people expected. I would have waited till inflation hit 2% (2.5% Aug). And who knows how long would take to reach 2.0%..And if inflation dipped below 2.0%, that’s even better (as long as you don’t go negative more than briefly).