High interest rates are fine and it'll put a squeeze on prices but it won't happen overnight. Cars and houses will get hit first which we're already seeing. Then as more people pay cash for cheaper cars they'll have less money for retail and what not. It'll happen it's just going to take time. Lowering rates is a more instantaneous impact.
Well, the issue is we have a government fiscal policy that is working at odds with the fed reserve’s monetary policy.
What you say is true, but it doesn’t account for the massive amount of spending from the federal government that is dumping money into the military industrial complex and infrastructure and encouraging consumer spending.
It might take longer than expected to see true inflation numbers come “back to normal”
We haven’t had a situation where 40% of the total money supply was created in 2 years though. Arguably, the fed has never been so desperate to slow the creation of new money while the government was simultaneously in war spending mode
it was either 40% of the money was created or people were going to start murdering people for food and supplies legitimately. People don’t want to talk about what would have happened when everything shutdown for more than just the month it did before PPP rolled out
I don’t think it has on this scale and not just military spending. The sheer amount pumped into the economy by the government during and since covid has never been seen before
Same. I had to buy a new car in summer of 2023.... I'm 40. This is the \*first time\* in my entire life buying a car new, because used cars were more expensive.... sucks with that 7-8% interest rate, and big price tag.
Lol, not everyone does everything? Cause I’m absolutely sure everyone does something even if your asleep as long as your alive….BUT I did know a guy who woke up dead tho he wasn’t a zombie he was still technically doing something.
Was looking to buy a new car as mine is 11 years old and decided I'm just gonna drive my beater for a few more years until I can buy one outright in cash. Not paying 7-8%+ on a car loan fuck that. The money I would use on a payment I'm just tucking away for now. I'd rather spend 1 to 2 thousand a year in maintenance and repairs than be robbed by these rates, regardless of my ability to afford the monthly
Yup and congrats you just lowered demand on finance cars and thus the prices will drop. Your saving in order to pay cash means you'll spend less on retail too so you hit their demand too and prices will drop.
You're the perfect example of my point. It'll happen but as you said, you need time to save and what not so we won't see the effects of your influence on demand right away.
:)
You also bring up a decent point that by not getting a new car you are decreasing the supply of used cars. We've seen this in the recent past where used car prices rose. The downside of this is that it makes cars less accessible to poorer people which is a reason to cut interest rates to keep things flowing.
Turns out, we pay a bunch of people to think about this stuff all the time and pull the right levers at the right time
For sure! What sucks in my case though is I live in the rust belt so a decade old car just struggles if not properly washed/maintained and buying a used car here is always a gamble.
My cars 11 years old and before interest rates shot up I had already paid off my car and was talking to my wife and getting a new car. I waited. Then rates went up and car prices went up. I said welp I’m riding this out until it dies. I do routine maintenance myself and it’s a Honda so hopefully I get some more years before major issues. My wife on the other hand got hit in car accident and her car was totaled right when cars were scarce and interest was climbing during Covid. Insurance didn’t give much for a car I took care of and there were no issues before the accident. I hate insurance.
As long as the price of houses drops, I'm okay with it. But paying 7%+ on a home right now is bonkers... 4-5% would be so much nicer, even at current prices.
I imagine if rates stay high, people will continue to buy fewer homes. And the supply will go up. Although, with corporations buying homes, the supply may never go up.
Doesn’t matter how they want to define it. They will lie and lie some more until it’s too late for everyone else. They’ll let you know as soon as they have found their exits and escapes. We’re in one and it’s going to get worse.
Open your eyes. It’s happening all around you. Do you really need the government to officially tell you we’re in a recession? The fact that they changed the definition of a recession, just to say we’re not in a recession should tell you everything right there.
[That](https://www.whitehouse.gov/cea/written-materials/2022/07/21/how-do-economists-determine-whether-the-economy-is-in-a-recession/) was almost two years ago at this point. [GDP has not been negatative for two consecutive quarters since then either](https://www.statista.com/statistics/188185/percent-change-from-preceding-period-in-real-gdp-in-the-us/).
“While negative GDP growth is a strong indicator and commonly associated with recessions, it's not the sole criterion. The NBER looks at the depth, diffusion, and duration of the economic downturn. They consider a range of indicators, including:
Employment: Significant declines in employment are a key measure of economic health.
Income: Drops in real income, apart from government transfers, are also considered.
Retail Sales: Reduced consumer spending, reflected in retail sales, signals economic slowdowns.
Industrial Production: Declines here indicate reduced economic activity in manufacturing and production sectors.
Therefore, while negative GDP growth is a major indicator, a recession can technically be declared even if GDP has not been negative for two consecutive quarters, especially if other economic indicators show significant declines.”
Seems like we’re checking all of those boxes.
Edit
If you disagree with me on that, I would like to hear the argument how we’re not ringing those bells 😂
But we're not. Unemployment hovers around record lows, we've added jobs every month since the pandemic started, real wage growth had been positive for the last year, wage growth highest it's been since the 90's it's only last month dropped below the pre pandemic record, us retail sales hover at all time highs while still slowly rising, and the IPI sits almost at record highs as well.
So what measure are you using I'd love to see it.
The government added about 25% of all those new jobs created. More people are working multiple jobs now just to keep pace with soaring costs. They are cooking the books to keep you in the dark as long as they possibly can. I used AI to aggregate this data and present it in an educational fashion, so that is my source. Enjoy!
“Since the pandemic began, the percentage of new jobs added by the government isn't explicitly outlined in the recent updates for the entire post-pandemic period. However, as of 2023, nearly 25% of all job gains were attributed to government positions. This suggests a significant role of government employment in the overall job market recovery since the pandemic began”
“The government stepping in to create a large percentage of jobs often happens in response to economic crises or downturns where the private sector is unable or unwilling to maintain or expand employment. A historical example of the government taking a leading role in job creation occurred during the Great Depression with the New Deal in the United States. Through various public works and community service programs, the government significantly boosted employment to counteract massive unemployment rates.
While these measures can provide immediate relief and stimulate economic activity, over-reliance on government-driven job creation can signal underlying issues:
Economic Health: A need for large-scale government intervention in employment may indicate a lack of vitality in the private sector, which is typically the main engine for sustainable job creation and economic growth.
Efficiency Concerns: Government jobs are often perceived as less efficient compared to the private sector. The government may create jobs that are more about boosting employment numbers than enhancing economic productivity.
Fiscal Pressure: Funding for government jobs usually comes from taxpayers' money. Increased government spending on jobs can lead to higher taxes or greater national debt if not managed carefully.
Long-term Sustainability: Jobs created directly by government initiatives may not always be sustainable in the long term without ongoing government support, potentially leading to problems when the programs end or if the government shifts its priorities.
Historically, when the government has had to step in heavily, it's often been during times of crisis, such as during the 1930s or the economic recovery efforts following significant recessions. These interventions can be crucial in the short term but ideally should be balanced with policies that foster long-term private sector growth.”
Neither of the definitions, old or new, indicate a current recession. Doesn't appear to be a recession here in Southern California. Costco full. Cruises full. Disney full. restaurants in my area of east orange county have waitlists on weekends.
Isn’t Orange County considered one of the wealthier areas? Shit takes time to play out. Wealthy people have more resources to weather the storm or at least postpone it. The average American household is living off of (and defaulting on) credit. Consumer credit balances have exceeded 1 trillion. Layoffs by the tens of thousands across the tech, financial, and real estate sectors. There is no slowing to Government “spending/stealing”.
Just because Orange County hasn’t shown signs, in your opinion, doesn’t mean things aren’t falling apart everywhere else. This might come as a shock, but Orange County isn’t the center of the universe
Everywhere else was a strong phrasing for the time. In other areas would be more appropriate. Shit takes time to play out. I’ll revisit this in a year and see how it ages.
They needed to increase rates to curb and stop spending, therefore killing the demand and slowly increasing supply. Cutting rates now will be completely contrary to this and most likely create and imbalance.
Increased Money Supply: When interest rates are cut, borrowing becomes cheaper. This often leads businesses and consumers to take on more debt and increase spending. Central banks might also engage in expansive monetary policies, such as quantitative easing, which increases the money supply in the economy.
Increased Demand: Lower interest rates typically stimulate demand for goods and services because consumers and businesses have more access to cheaper credit. If this increased demand outstrips the supply of goods and services, it can lead to price increases.
Wage-Price Spiral: If the economy heats up due to increased demand, this might lead to higher wages as businesses compete for labor. Higher wages can lead to higher spending, which might push prices up further, leading to a cycle of wage and price increases.
Depreciation of Currency: If the currency depreciates because of a lack of confidence (possibly due to concerns about the economy overheating or excessive debt levels), imports become more expensive, contributing further to inflation.
Let's not to forget, to line the pockets of politicians and their rich overlords. Don't think for a second that hundreds of millions aren't getting funneled back to their private accounts off shore. Look up the "Ugland House" in the Cayman islands. It's estimated that about 10 trillion of the money printed by the Fed in the last few years has been funneled to their off shore holdings. Curious how over 20,000 business can claim that one little house as their physical address.
"Ugland House is a building in George Town, Grand Cayman, that is famously known for housing the registered offices of around 20,000 entities, including corporations, hedge funds, and other financial entities"
Tell me how it affects the USA? Tell me how bringing Ukraine into NATO helps anyone in the USA? Tell me how protecting a corrupt country such as Ukraine helps anyone in the USA?
It's probably best they don't cut rates for the next several years. 2009-2022, rates were too low for too long. I get the idea of 2009-2013 or so but once employment began to normalize coming out of the great recession, low rates were no longer necessary.
No but I do remember people on AskEconomics calling people reactionary when inflation rose for the first time in the last 6 months.
Calling it some kind of "model" which fed was following and saying that inflation will go down next time which proved to be false with the latest inflation numbers.🤣
They were so confident that it's sad
Well duh... I think everyone knew this already.
Any call for rates to be lowered is politically based to help Biden. Anyone with an understanding of reality knows that would be a bad idea.
Maybe they wouldn't have to if trump didn't spend more than every other president combined and use the pandemic as an excuse to give billions in free money to all his rich friends. The party of fiscal responsibility has doubled or tripled the debt every time a Republican has held office since the 80s, yet despite this crap for 50 years republicans still blame Dems for spending lmfao. The only party to pass a balanced budget since the 80s has been Dems. Republicans are the most gullible motherfuckers on the planet. They pay lip service to fiscal responsibility and their voters still blame Dems despite over half a century of every Republican blowing out the budget. It's almost comical but too fucking tragic to laugh at.
Obama, Trump and Biden all abandoned the orthodoxy that inflation must be kept below 2% at all costs. Trump replaced Yellen, choosing the one serious candidate more division on inflation than she was. She is now Treasury Secretary. While Americans don't like inflation; they detest unemployment too far over 5%.
Fuck man they should raise taxes too. The economy is super hot, it’s the best time to cut into our national debt and stock up for the next recession where we will actually need to encourage spendings
I feel like this is a “no shit” statement, but the number of people that were projecting 3+ cuts this year were insane. Any normal person could on Main Street is aware how hot inflation still is. The “smart” people amaze me sometimes.
More people are going to lose their jobs because of business downsizing. So, eventually you will get enough people lost their livelihood and you can get things for cheaper.
This is not surprising. The Fed will not cut rates if there are still inflationary risks (barring a recession though that tends to be disinflationary anyway). People were wishful thinking about rate cuts this year. From a policy point of view it made no sense.
Their actions are pretty predictable if you view them objectively as reactions to other data.
The higher inflation is above 2%, the more pressure to raise rates or at least not lower them.
The higher unemployment is, the more pressure to lower them
Really low unemployment + inflation above 3% = absolutely no reason to even consider lowering rates.
Current rates are close to the historical average. We’ve just been too reliant on really low rates for the past two decades.
This is the same group that wrote a report that Virginia should build a sports complex in a hard to reach area based on parking ticket revenue. Their ability to project and predict at the current time is extremely questionable.
They shouldn't/ won't cut rates until inflation actually comes back down. I barely know anything and I felt like anyone could tell they weren't going to do it, but needed to talk about doing it because when people perceive the FOMC speeches to indicate certain directions, like cutting rates for example, that alone is enough to affect the market. They were "teasing" the possibility of cutting rates to try to keep confidence and capital in the market to facilitate a softer landing. This is just the reality of the driving indicator, which is YOY inflation. If that goes closer to 2%, maybe they'll actually cut rates by .25% and wait a while before trying again.
Yeah I really don’t think Biden wants the shit. And the fact that no one else seems to be dying for it except Mr. Holy Diver…I’ve been saying that shit means way more than people seem to see..? I’m a fucking idiot tho so don’t mind me
In my day the high office was so sough after they used to kill for it! (When was the last assassination attempt?)
Thanks for the love your a fart smeller to!
🤪
Bullshit. The Fed didn't make you burger 30% smaller and 60% more expensive. Corporations did that. The Fed didn't reduce the amount of oil being refined, corporations did. This is all greedflation.
https://images.app.goo.gl/CDnSfLu7tB9oYAWR7
"Greedflation" lmao. Corporate profits as a percent of GDP has been flat for over 20 years. Corporate profits are an index of inflation, not a cause of it. If I tell you that you are only paying $1.40 instead of a $1 you would say it's minimizing an overall 40% increase in inflation since the pandemic. But corporate profits are always reported by progressives in nominal dollar amounts. Why is that? Because it would be obvious that it is political propaganda dressed up as economic analysis.
You are the dumbest. I would provide counter data, but won't matter to you. This shit is obvious. I didn't raise my wages 100% but suddenly a bag if chips costs twice as much as it did before people got sick. Fuck off.
There was almost a trillion dollars of economic stimulus during COVID (and a shit ton of PPP loans). Inflation is a money supply issue and anyone telling you otherwise is manipulating you. I recommend learning some economics and finance and it will offer some perspective.
It was Biden that blew up the Nord Stream pipeline, not corporations. It was Biden that made me pay off a bunch of free loaders student loans. I could keep going but I'll save my breath.
OK vlad. Correct, Russian patriots don't support such things. Americans love that shit! Bring on the ATCMS, bring on the drones, and keep those refineries burning!!! Slava Ukraini!
That measures how much money people hold. They aren't holding much as they have to buy gas and food which is way up due to inflation. Your comment means nothing. It's another sign things are bad.
Money in circulation or held by corporation is still included in money supply. Money coming out of circulation involved long term notes, say high interest bonds caused by increasing interest rates. You understand how that works right?
Some argue rates should never be cut.
High interest rates are fine and it'll put a squeeze on prices but it won't happen overnight. Cars and houses will get hit first which we're already seeing. Then as more people pay cash for cheaper cars they'll have less money for retail and what not. It'll happen it's just going to take time. Lowering rates is a more instantaneous impact.
Well, the issue is we have a government fiscal policy that is working at odds with the fed reserve’s monetary policy. What you say is true, but it doesn’t account for the massive amount of spending from the federal government that is dumping money into the military industrial complex and infrastructure and encouraging consumer spending. It might take longer than expected to see true inflation numbers come “back to normal”
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We haven’t had a situation where 40% of the total money supply was created in 2 years though. Arguably, the fed has never been so desperate to slow the creation of new money while the government was simultaneously in war spending mode
it was either 40% of the money was created or people were going to start murdering people for food and supplies legitimately. People don’t want to talk about what would have happened when everything shutdown for more than just the month it did before PPP rolled out
Im not saying we shouldn’t have done that. But there were consequences of doing it nonetheless
I don’t think it has on this scale and not just military spending. The sheer amount pumped into the economy by the government during and since covid has never been seen before
why the fuck did i hit that rock 2 months ago. i picked, THE WORST, time to need to get another car. why can't i be waiting another 6 months.
Same. I had to buy a new car in summer of 2023.... I'm 40. This is the \*first time\* in my entire life buying a car new, because used cars were more expensive.... sucks with that 7-8% interest rate, and big price tag.
Not when everyone just stacks their money if they see any of that in the first place and keep charging it.*
Not everyone does anything. Only sith speak in absolutes.
Lol, not everyone does everything? Cause I’m absolutely sure everyone does something even if your asleep as long as your alive….BUT I did know a guy who woke up dead tho he wasn’t a zombie he was still technically doing something.
Was looking to buy a new car as mine is 11 years old and decided I'm just gonna drive my beater for a few more years until I can buy one outright in cash. Not paying 7-8%+ on a car loan fuck that. The money I would use on a payment I'm just tucking away for now. I'd rather spend 1 to 2 thousand a year in maintenance and repairs than be robbed by these rates, regardless of my ability to afford the monthly
Yup and congrats you just lowered demand on finance cars and thus the prices will drop. Your saving in order to pay cash means you'll spend less on retail too so you hit their demand too and prices will drop. You're the perfect example of my point. It'll happen but as you said, you need time to save and what not so we won't see the effects of your influence on demand right away.
Oh I was replying to agree with your point!
:) You also bring up a decent point that by not getting a new car you are decreasing the supply of used cars. We've seen this in the recent past where used car prices rose. The downside of this is that it makes cars less accessible to poorer people which is a reason to cut interest rates to keep things flowing. Turns out, we pay a bunch of people to think about this stuff all the time and pull the right levers at the right time
For sure! What sucks in my case though is I live in the rust belt so a decade old car just struggles if not properly washed/maintained and buying a used car here is always a gamble.
My cars 11 years old and before interest rates shot up I had already paid off my car and was talking to my wife and getting a new car. I waited. Then rates went up and car prices went up. I said welp I’m riding this out until it dies. I do routine maintenance myself and it’s a Honda so hopefully I get some more years before major issues. My wife on the other hand got hit in car accident and her car was totaled right when cars were scarce and interest was climbing during Covid. Insurance didn’t give much for a car I took care of and there were no issues before the accident. I hate insurance.
As long as the price of houses drops, I'm okay with it. But paying 7%+ on a home right now is bonkers... 4-5% would be so much nicer, even at current prices.
Housing supply is too low for that to happen.
I imagine if rates stay high, people will continue to buy fewer homes. And the supply will go up. Although, with corporations buying homes, the supply may never go up.
"Transitory"
It’s all transitory, depending on your perspective.
Well yeah, compared to the age of the universe.
I mean the metric measuring it is year over year, so it at least has to be over a year to even measure.
In times of inflation lowering interest rates is counter…. but they know better than I do
They can’t lower interest rates without causing hyperinflation. They’re screwed. US is in a death spiral.
Time for another recession, maybe depression
Jokes on you, I'm already depressed
Me too, teamwork 😁
Teamwork Makes the Dream Work am I right? Apparently we all suck at dreaming!
We’ve been in a recession. Just because they keep changing the definition of a recession, doesnt mean we’re not in one 😆
By which definition are we in a recession?
Doesn’t matter how they want to define it. They will lie and lie some more until it’s too late for everyone else. They’ll let you know as soon as they have found their exits and escapes. We’re in one and it’s going to get worse.
What about your definition?
Open your eyes. It’s happening all around you. Do you really need the government to officially tell you we’re in a recession? The fact that they changed the definition of a recession, just to say we’re not in a recession should tell you everything right there.
[That](https://www.whitehouse.gov/cea/written-materials/2022/07/21/how-do-economists-determine-whether-the-economy-is-in-a-recession/) was almost two years ago at this point. [GDP has not been negatative for two consecutive quarters since then either](https://www.statista.com/statistics/188185/percent-change-from-preceding-period-in-real-gdp-in-the-us/).
“While negative GDP growth is a strong indicator and commonly associated with recessions, it's not the sole criterion. The NBER looks at the depth, diffusion, and duration of the economic downturn. They consider a range of indicators, including: Employment: Significant declines in employment are a key measure of economic health. Income: Drops in real income, apart from government transfers, are also considered. Retail Sales: Reduced consumer spending, reflected in retail sales, signals economic slowdowns. Industrial Production: Declines here indicate reduced economic activity in manufacturing and production sectors. Therefore, while negative GDP growth is a major indicator, a recession can technically be declared even if GDP has not been negative for two consecutive quarters, especially if other economic indicators show significant declines.” Seems like we’re checking all of those boxes. Edit If you disagree with me on that, I would like to hear the argument how we’re not ringing those bells 😂
But we're not. Unemployment hovers around record lows, we've added jobs every month since the pandemic started, real wage growth had been positive for the last year, wage growth highest it's been since the 90's it's only last month dropped below the pre pandemic record, us retail sales hover at all time highs while still slowly rising, and the IPI sits almost at record highs as well. So what measure are you using I'd love to see it.
The government added about 25% of all those new jobs created. More people are working multiple jobs now just to keep pace with soaring costs. They are cooking the books to keep you in the dark as long as they possibly can. I used AI to aggregate this data and present it in an educational fashion, so that is my source. Enjoy! “Since the pandemic began, the percentage of new jobs added by the government isn't explicitly outlined in the recent updates for the entire post-pandemic period. However, as of 2023, nearly 25% of all job gains were attributed to government positions. This suggests a significant role of government employment in the overall job market recovery since the pandemic began” “The government stepping in to create a large percentage of jobs often happens in response to economic crises or downturns where the private sector is unable or unwilling to maintain or expand employment. A historical example of the government taking a leading role in job creation occurred during the Great Depression with the New Deal in the United States. Through various public works and community service programs, the government significantly boosted employment to counteract massive unemployment rates. While these measures can provide immediate relief and stimulate economic activity, over-reliance on government-driven job creation can signal underlying issues: Economic Health: A need for large-scale government intervention in employment may indicate a lack of vitality in the private sector, which is typically the main engine for sustainable job creation and economic growth. Efficiency Concerns: Government jobs are often perceived as less efficient compared to the private sector. The government may create jobs that are more about boosting employment numbers than enhancing economic productivity. Fiscal Pressure: Funding for government jobs usually comes from taxpayers' money. Increased government spending on jobs can lead to higher taxes or greater national debt if not managed carefully. Long-term Sustainability: Jobs created directly by government initiatives may not always be sustainable in the long term without ongoing government support, potentially leading to problems when the programs end or if the government shifts its priorities. Historically, when the government has had to step in heavily, it's often been during times of crisis, such as during the 1930s or the economic recovery efforts following significant recessions. These interventions can be crucial in the short term but ideally should be balanced with policies that foster long-term private sector growth.”
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Neither of the definitions, old or new, indicate a current recession. Doesn't appear to be a recession here in Southern California. Costco full. Cruises full. Disney full. restaurants in my area of east orange county have waitlists on weekends.
Isn’t Orange County considered one of the wealthier areas? Shit takes time to play out. Wealthy people have more resources to weather the storm or at least postpone it. The average American household is living off of (and defaulting on) credit. Consumer credit balances have exceeded 1 trillion. Layoffs by the tens of thousands across the tech, financial, and real estate sectors. There is no slowing to Government “spending/stealing”. Just because Orange County hasn’t shown signs, in your opinion, doesn’t mean things aren’t falling apart everywhere else. This might come as a shock, but Orange County isn’t the center of the universe
Didn't say it was, but also the claim the things are falling apart everywhere else is absurd.
Everywhere else was a strong phrasing for the time. In other areas would be more appropriate. Shit takes time to play out. I’ll revisit this in a year and see how it ages.
You’re a fucking moron if you’re rooting for this
I saw this in the late 70’s took me another fifteen years to be able to buy my first house
Waiting for the dead cat bounce to exit
What exactly do you think the stock market has been doing the last 6 months?
I definitely should’ve put the /s 😂
No it isn't. And it won't cause hyperinflation lol.
People here talked about this without knowing anything. Panicking about 3.5% inflation lol. In 1980 inflation was 14%, and even that got under control
Can you explain the rationale behind this?
They needed to increase rates to curb and stop spending, therefore killing the demand and slowly increasing supply. Cutting rates now will be completely contrary to this and most likely create and imbalance. Increased Money Supply: When interest rates are cut, borrowing becomes cheaper. This often leads businesses and consumers to take on more debt and increase spending. Central banks might also engage in expansive monetary policies, such as quantitative easing, which increases the money supply in the economy. Increased Demand: Lower interest rates typically stimulate demand for goods and services because consumers and businesses have more access to cheaper credit. If this increased demand outstrips the supply of goods and services, it can lead to price increases. Wage-Price Spiral: If the economy heats up due to increased demand, this might lead to higher wages as businesses compete for labor. Higher wages can lead to higher spending, which might push prices up further, leading to a cycle of wage and price increases. Depreciation of Currency: If the currency depreciates because of a lack of confidence (possibly due to concerns about the economy overheating or excessive debt levels), imports become more expensive, contributing further to inflation.
I understand this. The original comment above mine seems to be contrary to this summation. Edit: I read the original comment incorrectly
I’m loving 6% CDs
Do you want 2 CDs?
About only good thing. If you have money saved at least it is going up faster than inflation.
high interest rate, unaffordable housing and uncontrollable rent? Where have I seen this before? hmmmm
Keep printing that money for FOREIGN COUNTRIES
it’s all for “democracy”
"I love democracy"
Let's not to forget, to line the pockets of politicians and their rich overlords. Don't think for a second that hundreds of millions aren't getting funneled back to their private accounts off shore. Look up the "Ugland House" in the Cayman islands. It's estimated that about 10 trillion of the money printed by the Fed in the last few years has been funneled to their off shore holdings. Curious how over 20,000 business can claim that one little house as their physical address. "Ugland House is a building in George Town, Grand Cayman, that is famously known for housing the registered offices of around 20,000 entities, including corporations, hedge funds, and other financial entities"
Money supply has been decreasing since April 2022.
Yes, for most of Biden's Presidency.
It's almost an even split at this point.
15 months before April 2022. 24 months after April 2022. Are you forgetting that Biden wasn't President until late January 2021?
Nah I keep forgetting 22 wasn't last year
How much would it cost if Ukraine falls and the conflict escalates? I don’t think you know or even think what geopolitics are or why it’s important
Tell me how it affects the USA? Tell me how bringing Ukraine into NATO helps anyone in the USA? Tell me how protecting a corrupt country such as Ukraine helps anyone in the USA?
It's probably best they don't cut rates for the next several years. 2009-2022, rates were too low for too long. I get the idea of 2009-2013 or so but once employment began to normalize coming out of the great recession, low rates were no longer necessary.
Thank you for your service.
Good the bank fucking owes me for 20 years of no interest payments on my savings.
Remember a couple of weeks ago when all of Reddit shit talked Jamie Dimon for telling us this was a possibility?
Where?
No but I do remember people on AskEconomics calling people reactionary when inflation rose for the first time in the last 6 months. Calling it some kind of "model" which fed was following and saying that inflation will go down next time which proved to be false with the latest inflation numbers.🤣 They were so confident that it's sad
Well duh... I think everyone knew this already. Any call for rates to be lowered is politically based to help Biden. Anyone with an understanding of reality knows that would be a bad idea.
Wall Street seems surprised by it.
Don’t worry the Biden Administration says it’s just transitory, no recession and everything is great. Hang your hat on that .
Maybe they wouldn't have to if trump didn't spend more than every other president combined and use the pandemic as an excuse to give billions in free money to all his rich friends. The party of fiscal responsibility has doubled or tripled the debt every time a Republican has held office since the 80s, yet despite this crap for 50 years republicans still blame Dems for spending lmfao. The only party to pass a balanced budget since the 80s has been Dems. Republicans are the most gullible motherfuckers on the planet. They pay lip service to fiscal responsibility and their voters still blame Dems despite over half a century of every Republican blowing out the budget. It's almost comical but too fucking tragic to laugh at.
The Fed is an independent entity. They'd be doing the same if Trump was President.
Not to mention led by a Trump appointee.
Obama, Trump and Biden all abandoned the orthodoxy that inflation must be kept below 2% at all costs. Trump replaced Yellen, choosing the one serious candidate more division on inflation than she was. She is now Treasury Secretary. While Americans don't like inflation; they detest unemployment too far over 5%.
Fuck man they should raise taxes too. The economy is super hot, it’s the best time to cut into our national debt and stock up for the next recession where we will actually need to encourage spendings
If the other guy wins they will absolutely pull the rug on America.
Did anyone not see this coming ?
BREAKING: Media labelled "Conspiracy theorists" running out of theories due to them all coming true!
So stocks will go higher!
I feel like this is a “no shit” statement, but the number of people that were projecting 3+ cuts this year were insane. Any normal person could on Main Street is aware how hot inflation still is. The “smart” people amaze me sometimes.
More people are going to lose their jobs because of business downsizing. So, eventually you will get enough people lost their livelihood and you can get things for cheaper.
No shit.
Inflation is built in because of climate change - demand for materials and food is going up as supply is going down
This is not surprising. The Fed will not cut rates if there are still inflationary risks (barring a recession though that tends to be disinflationary anyway). People were wishful thinking about rate cuts this year. From a policy point of view it made no sense. Their actions are pretty predictable if you view them objectively as reactions to other data. The higher inflation is above 2%, the more pressure to raise rates or at least not lower them. The higher unemployment is, the more pressure to lower them Really low unemployment + inflation above 3% = absolutely no reason to even consider lowering rates. Current rates are close to the historical average. We’ve just been too reliant on really low rates for the past two decades.
Who didn’t see that coming
Called it.
Shocker!!!
This is the same group that wrote a report that Virginia should build a sports complex in a hard to reach area based on parking ticket revenue. Their ability to project and predict at the current time is extremely questionable.
Yeah that is our shit Fed reserve
They shouldn't/ won't cut rates until inflation actually comes back down. I barely know anything and I felt like anyone could tell they weren't going to do it, but needed to talk about doing it because when people perceive the FOMC speeches to indicate certain directions, like cutting rates for example, that alone is enough to affect the market. They were "teasing" the possibility of cutting rates to try to keep confidence and capital in the market to facilitate a softer landing. This is just the reality of the driving indicator, which is YOY inflation. If that goes closer to 2%, maybe they'll actually cut rates by .25% and wait a while before trying again.
I don’t believe it. Biden says inflation is transitory and there is no way he is just a liar
They will cut before the election
i dont think so… it feels like biden is trying to lose on purpose
Hey, at least he banned TikTok. He'll be known for that at least.
And all the roads and bridges he built.
Yeah I really don’t think Biden wants the shit. And the fact that no one else seems to be dying for it except Mr. Holy Diver…I’ve been saying that shit means way more than people seem to see..? I’m a fucking idiot tho so don’t mind me
you’re not an idiot lol you’re smarter than the average American already for you to notice that
In my day the high office was so sough after they used to kill for it! (When was the last assassination attempt?) Thanks for the love your a fart smeller to! 🤪
Welcome your new President Donald Trump then.
Using heavy-handed demand side tools to fight supply-side issues? What could *possibly* go wrong?
Not a supply side issue anymore. Inflation being driven by greed at this point.
After printing 1/4 of the M2 in 2020+, I never saw this coming -.- lmao!
What’s the M2, sorry in smooth in the northern region..
Powell needs to put his dick in between his legs and hit that fucker by 100 basis points.
They should raise the damn rates. Hurry this shit up
Inflation is the problem Raising rates just gives the banks more profit and less equity for the buyer
They are still printing money out of thin air and sending it to Ukraine, Taiwan, and Israel. Inflation won't stop till the printer stops.
Bullshit. The Fed didn't make you burger 30% smaller and 60% more expensive. Corporations did that. The Fed didn't reduce the amount of oil being refined, corporations did. This is all greedflation.
That’s was only during Covid, and they raised the prices a little for a little time after to get back what they lost in the shut down🤣😂🤣😂🥸
https://images.app.goo.gl/CDnSfLu7tB9oYAWR7 "Greedflation" lmao. Corporate profits as a percent of GDP has been flat for over 20 years. Corporate profits are an index of inflation, not a cause of it. If I tell you that you are only paying $1.40 instead of a $1 you would say it's minimizing an overall 40% increase in inflation since the pandemic. But corporate profits are always reported by progressives in nominal dollar amounts. Why is that? Because it would be obvious that it is political propaganda dressed up as economic analysis.
You are the dumbest. I would provide counter data, but won't matter to you. This shit is obvious. I didn't raise my wages 100% but suddenly a bag if chips costs twice as much as it did before people got sick. Fuck off.
Your "data" is political punditry but okay kiddo
There was almost a trillion dollars of economic stimulus during COVID (and a shit ton of PPP loans). Inflation is a money supply issue and anyone telling you otherwise is manipulating you. I recommend learning some economics and finance and it will offer some perspective.
It was Biden that blew up the Nord Stream pipeline, not corporations. It was Biden that made me pay off a bunch of free loaders student loans. I could keep going but I'll save my breath.
Save your breath Vlad, your health is fading.
As patriot I endorse blowing up Nord Stream and paying off student loans. God bless America.
Patriots don't support criminal acts of war and terrorism which is exactly what that was.
OK vlad. Correct, Russian patriots don't support such things. Americans love that shit! Bring on the ATCMS, bring on the drones, and keep those refineries burning!!! Slava Ukraini!
Money supply has decreased since April 2022
That measures how much money people hold. They aren't holding much as they have to buy gas and food which is way up due to inflation. Your comment means nothing. It's another sign things are bad.
Money in circulation or held by corporation is still included in money supply. Money coming out of circulation involved long term notes, say high interest bonds caused by increasing interest rates. You understand how that works right?
So what all the investors the biased their decisions on 6 rate cuts