If the CNBC article is accurate, why is the Fed still cutting interest rates, when lower rates will not help save jobs or generate new jobs? But rate cuts may flame inflation, which has not been tamed yet.
Rate cuts will juice the asset markets, especially stocks and housing, which do not benefit the people who needs help most…. And may in fact make things worse if housing rental rates move up.
EconomistWithaD on
The ADP jobs report just got even more important.
Given Furman’s finding that a sizable chunk of GDP growth in Q3 is AI based, job losses in AI and AI adjacent industries, coupled with overall labor market weakness in other sectors, could lead to an interesting call for the NBER: is it a recession with positive and substantial GDP growth?
The stock market is humming because of wealth effects, and consumer spending is being buoyed by a small fraction of US consumers.
There are still plenty of negative supply shocks out there, which makes this a very risky time for Fed activity
FlanneryODostoevsky on
Starting to think this is the point. The allegiances created between republicans and big tech will probably mean bringing manufacturing back to America but with a lot of ai and automation.
3 Comments
If the CNBC article is accurate, why is the Fed still cutting interest rates, when lower rates will not help save jobs or generate new jobs? But rate cuts may flame inflation, which has not been tamed yet.
Rate cuts will juice the asset markets, especially stocks and housing, which do not benefit the people who needs help most…. And may in fact make things worse if housing rental rates move up.
The ADP jobs report just got even more important.
Given Furman’s finding that a sizable chunk of GDP growth in Q3 is AI based, job losses in AI and AI adjacent industries, coupled with overall labor market weakness in other sectors, could lead to an interesting call for the NBER: is it a recession with positive and substantial GDP growth?
The stock market is humming because of wealth effects, and consumer spending is being buoyed by a small fraction of US consumers.
There are still plenty of negative supply shocks out there, which makes this a very risky time for Fed activity
Starting to think this is the point. The allegiances created between republicans and big tech will probably mean bringing manufacturing back to America but with a lot of ai and automation.