That’s exactly what I am talking about. We don’t have any reason to think that the US economy is getting better. There is huge political instability there and the US is arm wrestling China.
They should be raising rates in this picture but then many companies would go bankrupt and unemployment would sky rocket.
Raise rates when inflation is low? No, that is not what they are supposed to do in that case. As inflation continues to diminish or stabilize, rates get lowered to create an incentive for spending. That's usually what happens.
That means this rate cut was a move coming from desperation, not strength.
This is not correct.
And whenever they cut rates out of desperation, markets sky rocket first (or theyalready priced that in) and makes a huge crash next.
Only in the few days leading up to the actual cut, the market was negative on a cut 1-2 months ago. People forget things quickly these days, you're consuming too much content if you can't recall what you've read not that long ago.
I saw that too. Do you think this cut is more about calming markets or actually responding to economic weakness? Feels like central banks are walking a tightrope right now. I’m also curious how many more cuts people are expecting before year-end, if any
The situation is stable, neither very good or very bad. Anyone who claims otherwise is reading nonsensical news headlines or misinterpreting what the FED said.
