I agree and disagree. 50 bps definitely way too much of a swing. Last 4 Fed did 50 bps cutsUNI88 wrote: ↑Fri Sep 20, 2024 8:54 amWhat's it like to see conspiracies everywhere?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
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.
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).