In my view, this means that easing policies are imminent, but not soon.
Growth stocks should be well-suited to this rate cut, but interest rate-sensitive sectors may feel it's insufficient.
This feels more like a controlled adjustment than a true easing cycle.
Is this good for the stock market, or will the market struggle to digest it?
The Federal Reserve predicts a 25 basis point rate cut in December, with two more cuts expected in 2026.
byu/Plane-Candidate5828 instocks
Posted by Plane-Candidate5828
8 Comments
I think a soft landing is a very likely scenario, a stagnant market/economy. The stock market today is a very different animal than it was 20 years ago, zero commission trading plus an army of buy the dippers help stem any major fallout. As long as governments keep pumping money I really dont see how we get the 2008 type crash.
2008 was a time when auto companies were failing left and right and banks were vanishing overnight. So unless we get that type of scenario I dont think we can see a 2008 panic. Remember the great financial crisis was more panic than it was actual business fundamentals.
Thats not to say growth stocks wont fall, market will still be risk adverse. Assets like bitcoin which rely on liquidity rather than business fundamentals will have a harder time imo
I’ll give you an example, here in Canada we’re at 7% unemployment which is high. Our government just went into a 78 billion deficit spending on infrastructure projects just to create jobs and pump the system… how can you have a recession with that much money injected?
There’s room for debate…
unemployment and delinquency are rising. Inflation is contained, but sitting in a dangerous zone.
We’re at the beginning of a rate-cutting cycle, which will be great as long as nothing goes off the rails (e.g., depression, stagflation, etc)
ThIs iS gOiNG tO fReE uP dIScReTIOnaRY sPEnDinG…..
Nope. Insurance has risen on all fronts. Cost of essentials have sky rocketed. Durable goods are almost unaffordable.
Delusional.
We get a 2008 type crash thanks to the BBB and millions losing their insurance. Healthcare premiums for others are 3x, do you know how many responsible people that normally pay debt wasn’t anticipating that or an increase from 1500 to 4500 for health insurance? It could take up all their extra income and the income used to pay off debt when debt is already so high.
Then you have millions getting ready to lose their jobs all together bc all the jobs created to care for the 20 million Medicaid recipients are going to disappear… Medicaid recipients do not replace that insurance which we know historically. Add those millions of job cuts to the jobs already being lost to AI and it’s a full blown crisis.
All of these catalysts with 0 wiggle room for 80% of Americans.
Let’s call it what it is the fed trying to tap the brakes without admitting they’re driving into fog. A tiny cut in december isn’t easing, it’s PR. Rates stay high enough to choke housing but low enough for tech bros to buy another server rack, polymarket’s inflation markets still show people betting inflation won’t cool cleanly, so don’t expect the market to throw a parade. At best we get a sugar high. At worst, it’s a shrug
good, I need to refi the house I bought in 2023
Priced in, get wrekt
Housing/rent doubled but I didn’t see anyone complaining. Parking lots are full. I can barely get down the isles at the grocery stores. Amazon trucks everywhere. Not one vacant building at these strip malls. These gyms are packed even before New Year’s resolution. Home Depot/Lowe’s gotta park in the back. Ppl still spending.