Powell sort-of hinted at rate cuts. What happens if CPI comes in at 3.0+% on 9/11/25? Would Powell scrap the rat-cut plan and opt for a rate-hike? How likely is this scenario?
Powell sort-of hinted at rate cuts. What happens if CPI comes in at 3.0+% on 9/11/25? Would Powell scrap the rat-cut plan and opt for a rate-hike? How likely is this scenario?
byu/JamestotheJam ineconomy
Posted by JamestotheJam
5 Comments
It depends on the employment and GDP numbers. Could happen if jobs and economy are great and inflation high.
People are betting on a cut though.
Basically zero chance of a rate hike. We’re *already* in restrictive monetary policy, and with inflation and employment both being somewhat equal concerns, you should move to neutral policy, which is where the rate cuts come in
If inflation comes in much hotter than expected, then we’d likely just keep our current rate
Very unlikely to go they other direction if anything he left room to keep it the same.
The fed knows tariffs are increasing inflation so you’d expect them to weigh unemployment higher
I would love to see that just to watch trumps head explode.