Quote from: imamusma on September 08, 2025, 02:20:00 PM

Quote from: fuguebtc on September 08, 2025, 08:10:33 AM

It can be said that the Fed is in a dilemma. Because with such high unemployment and if they don't lower interest rates, this could push the US economy into recession. Conversely, if they cut interest rates and inflation picks up again next year, things won't be much better.

The market is very optimistic that the Fed will cut interest rates on the 17th, but I think they will only make a final decision when they look at the CPI index released on September 10. If CPI comes up unexpectedly, I don't think they will cut interest rates like the market is expecting.

However, the fact is that President Trump wants interest rate cuts, and if that doesn't happen, tensions between Trump and the Fed will continue to escalate. I personally hope the Fed can lower interest rates, not because I support Trump, but because it will have a good impact on the crypto market. We'll see what happens in the next week when the Fed holds its meeting, many parties seem optimistic.

Whether the Fed lowers interest rates or not depends on the health of the economy, they don't care much about Trump's feelings because the Fed's job is not to please Trump or any government.
The Fed is an independent organization and its mission is to maintain economic stability. That is why, aside from complaining and cursing on social media, Trump can do nothing to influence the Fed's decision.

It's not just you, everyone wants the Fed to lower interest rates because everyone believes it will bring growth to the market. But the "sell the news" scenario is also possible, be careful.

Quote from: pooya87 on September 09, 2025, 07:01:11 AM

US economy (like many other economies) is already in a recession. The governments just don't want to admit it already to prevent the recession from getting worse. In fact one of the reasons why Trump is pushing for a rate cut like this is the fact that US economy is in a recession and the belief is that cutting rates fixes it.

You are probably right, I just checked the data again and the US economy in Q4 2024 and Q1 2025 both show negative growth. In theory, negative GDP for two consecutive quarters means the economy has entered a recession.
Yes, America is in recession but they don't want to admit it.