It’s really bizarre that this sub seems to think that powell and the fed haven’t been very clear in their intention. It’s always been about hitting that sweet spot of a good job market with no inflation. Inflation is not at the 2% goal but is still reasonable and not much of an existential threat like it was in 2022. The job market has been brutal however as evidenced by the recent numbers and revisions. Why does everyone overthink this and think powell is playing some 4D chess and won’t cut rates to help the job market ? It’s obvious that’s his intention.
Also, this sub doesn’t like to hear it but the market almost always rallies well the year after rate cuts start. This is independent of the president. It’ll probably happen with trump too.
Fed has two goals: keep unemployment and inflation in check. Its abundantly clear the fed thinks the job market is worse than inflation
byu/UnderstandingThin40 instocks
Posted by UnderstandingThin40
9 Comments
I think even if he cuts rates it wont make an impact on the job market. It will just give company a bit more leeway to sack more people.
Yup! Thats why it’s time to cut rates. We haven’t seen the massive inflation that economists were doom and glooming about all year. I’m sure there are more excuses that liberals can think of, but as of right now, none of them have panned out.
Time to cut rates so that companies can hire people again.
Long term rates went up when Fed cut short rates a year ago.
We are in a post-COVID economy where the dusty old rulebook of how inflation, job creation, etc. work is followed at your own peril. Just ask Biden and Yellen.
When I listen to the Fed, they don’t know what to think because too many things have changed. Immigration affects jobs. And tariffs affect inflation.
They lie about the job numbers only to revise them massively later.
They lie about inflation to stop a bank and goods run.
They cut interest rates to help keep the rich stay that way.
Been their policy since the end of the Great Recession, it’s in the past 3-5 years that it’s beyond obvious their goal – protect the markets and housing bubble at all cost. Reality be damned.
The 82% making under 100k can fend for themselves.
The “4D chess” narrative often overlooks the Fed’s data-dependent simplicity: weakeness in employment → rate cuts to support demand. Political noise and structural complexities (e.g., tariffs) add layers of complexity though; and unfortunately there isn’t a whole lot that Powell and the Fed can do about them.
The job market is bad. But the president enacting some of the most inflationary polices of our lifetime is also bad.
I honestly think the Supreme Court blocks most tariffs, rates come down, and the market continues upward
My concern is that we get rate cuts, that helps in the short term but if inflation is over 2% while we are cutting rates and losing jobs then it’s going to increasingly weigh on your average consumer. Generally when unemployment goes up inflation shouldn’t be this high, even if it’s not super high historically.
Additionally, so much of the growth is targeted in tech that I feel it mask up a lot of other areas. As an investor in those stocks, makes sense to be bullish for sure! But feel like there are warning signs.
Also as a side note, the rates aren’t even that high lol.
Did you see it the same way a month ago or is this just hindsight with this week’s/today’s number?
For me, it’s only today that inflation is much lower risk than yesterday