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Scraped on 30/08/2025, 19:21:58 UTC
The fed has a dual mandate. Job market is at historical high. Unemployment is at a level consistent with full employment. Wage are growing, slower, but growing.
Inflation is still above target, with a potential effect from tariffs that has still to materialise, given the most increase comes from services and housing markets.
The risk is to cut to soon, and when tariffs come into play, being forced to raise rates too violently.
I understand what you are trying to say, but I am trying to say that the risk is much less than it is perceived because the cuts are so small. A single 25 point cut is not gonna crash the economy. Inflation is still above target, with a potential effect from tariffs that has still to materialise, given the most increase comes from services and housing markets.
The risk is to cut to soon, and when tariffs come into play, being forced to raise rates too violently.
Now if they were to make a major cut right away after a long break, say 50 points or even 100 then I would be concerned. In the case of a too early 25 point cut, the negative effects are going to be mild but noticeable enough to create a pause on the next cut. I am not concerned with this at all. And would a rate cut save the economy? No I highly doubt that
Maybe, who knows. Let them cut it and stop fighting The US is in a tricky situation they might be heading into a recession (which could encourage the rate cut).
The US economy is doing better than the economy of Canada, the UK, and any EU country. Don't worry about recession under Trump if you didn't worry about it under Biden, when there was actually a recession they just changed its definition to hide it. 
Original archived Re: Trump and the pressing rate cut
Scraped on 30/08/2025, 19:16:29 UTC
The fed has a dual mandate. Job market is at historical high. Unemployment is at a level consistent with full employment. Wage are growing, slower, but growing.
Inflation is still above target, with a potential effect from tariffs that has still to materialise, given the most increase comes from services and housing markets.
The risk is to cut to soon, and when tariffs come into play, being forced to raise rates too violently.
I understand what you are trying to say, but I am trying to say that the risk is much less than it is perceived because the cuts are so small. A single 25 point cut is not gonna crash the economy. Inflation is still above target, with a potential effect from tariffs that has still to materialise, given the most increase comes from services and housing markets.
The risk is to cut to soon, and when tariffs come into play, being forced to raise rates too violently.
And would a rate cut save the economy? No I highly doubt that
Maybe, who knows. Let them cut it and stop fighting it. We will find out after a cut who was right.The US is in a tricky situation they might be heading into a recession (which could encourage the rate cut).
The US economy is doing better than Canada, UK, and any EU country. Don't worry about recession under Trump if you didn't worry about it under Biden, when there was actually a recession they just changed its definition to hide it.