More Rate Cut Flip Flopping \ stacker news ~econ

2620 sats \ 14 comments \ @siggy47 8 Apr econ

This might be the quote of the day, by George Lagarias, chief economist at Mazars:

This is a strong economy. Make no mistake, it is backed by debt and somewhat by overburdened credit cards, but it is a strong economy. So the Fed will struggle to find the case to cut rates soon.”

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95 sats \ 0 replies \ @BlokchainB 8 Apr

I can’t take anything seriously anymore. I got one of those USA badge debt clocks and the debt went up like $20 billion over the weekend!!

This stuff isn’t based in reality anymore. Why I am thinking all of this rate cut stuff and eyes on the Fed is just another rich man’s trick

85 sats \ 1 reply \ @Coinsreporter 8 Apr

Exactly, I also view it in the same way.

How an economy which is on ATHs of debts cut the rates. They can only do it if they print it some trillions once again.

85 sats \ 0 replies \ @quark 8 Apr

cutting rates allow to pay less debt, but will increase inflation again, which is not wanted until elections at least. I am also struggling to see how they would cut rates. World War III , or the next pandemic with the H5N1? black swans can happen. If not, it would not make sense to cut right now.

75 sats \ 0 replies \ @Satosora 9 Apr

The only way the USA will actually get ahead is by going through a depression and paying off its debt. Once it does that, it might rise from the ashes.

75 sats \ 0 replies \ @grayruby 8 Apr

This is a sturdy house made of cards.

75 sats \ 2 replies \ @Cje95 8 Apr

From what I have observed watching all these various people talk about it is the only way we are going to get these 3+ rate cuts people expect is if we move our target to at least 2.5% if not just 3%. If they don't change anything I could see where they do a 25 basis point cut in an attempt to save face since it wont have that significant of an impact but that's it.

0 sats \ 1 reply \ @siggy47 OP 8 Apr

Biden and Wall Street will be pissed off, but you're right.

75 sats \ 0 replies \ @Cje95 8 Apr

Part of me is thinking that Wall Street is starting to accept this more and more. The only reason I think that is that they are buying up a lot of their longer-term debt now which sounds counterproductive since it is low interest but getting debt off the book incase you have to issue more optically does look better. Esp. if you think you will be good for the next few years. They have also been buying up a ton of conversion notes as well which I think is for the same reason.

75 sats \ 5 replies \ @Bell_curve 8 Apr

No mention of inflation target. Can we have a strong economy if inflation is over 2 percent?

Inflation is lower than 2022 and 2023 but prices are still rising especially food and groceries and gas ⛽️. Can we still have a strong economy if staples are expensive with no immediate end in sight?

10 sats \ 2 replies \ @Cje95 8 Apr

So one thing that I can say for certain since my brother is in the industry is the poultry industry is in a huge huge hole right now. Avian flu has mutated to the extent it can cross between various farm animals and without using vaccines or antibiotics they have to not only put the birds down but practically burn the barns down they were in as well.

This is why you are seeing more and more of these companies walk back their vaccine/antibotic-free poultry products back. It isn't possible for them to be mass raised at this point and the price to stay low given the situation. There is also a huge fear in that humans might be able to get sick from eggs now. Avian flu hasn't been something spread through eating eggs before that people were concerned about but here we are.

Ag in general is getting hit hard with Cali getting washing out all the time right now as well. While we are trying to onshore stuff like food the places historically that it would be grown are not in good shape right now.

10 sats \ 1 reply \ @Bell_curve 8 Apr

Poultry and egg shortage?

Which came first? Terrible joke attempt

10 sats \ 0 replies \ @Cje95 8 Apr

Lol I love it though! He was explaining it all to me and boy oh boy is it a mess right now especially in Texas!

10 sats \ 1 reply \ @siggy47 OP 8 Apr

Exactly. I liked that you said "prices are still rising." That's a feature, rather than a bug, as far as they're concerned. They think inflation is necessary and good. They just want to fine tune exactly how much. After all these years they still don't realize that their little meetings can't ultimately control the market.

0 sats \ 0 replies \ @Bell_curve 8 Apr

Shocking that their “Inflation is necessary” message is not resonating with people whose annual salary is less than one million bucks