Economic News | Fed will wait and see about rate cuts

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I do not envy central bankers around the world right now. The Fed hasn't had a more difficult policy-setting environment since the 1970s at the earliest.

I would not cut interest rates. I would try to keep inflation under control. Cutting rates in the face of contractionary fiscal policy is likely to be ineffective. Keep inflation low, and wait for the political branches to remove the tariffs and the ridiculous slash-and-burn tactics at the government.
 
ChileG said:
Trusting Trump is about the dumbest thing any person could do.
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Donald J. Trump to the Economic Club of New York, September 5, 2024:
“We will bring our auto-making industry to the record levels of 37 years ago, and we’ll be able to do it very quickly through tariffs and other smart use of certain things that we have that other countries don't.”
“Energy is going to bring us back. That means we’re going down and getting gasoline below $2 a gallon, bring down the price of everything from electricity rates to groceries, airfares, and housing costs.”
“We will eliminate regulations that drive up housing costs with the goal of cutting the cost of a new home in half. We think we can do that.”
Donald J. Trump now:
“WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!) BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”
Let them eat flatscreens, I guess.
 
nycfan said:

Hiring Defied Expectations in March, With 228,000 New Jobs​

GIFT LINK 🎁 —> https://www.wsj.com/economy/jobs-re...01?st=PCWNh8&reflink=mobilewebshare_permalink
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“The U.S. added 228,000 jobs in March, the Labor Department reported Friday, well above the gain of 140,000 jobs economists polled by The Wall Street Journal had expected to see.

That was more than the 117,000 jobs added in February.

The unemployment rate, which is based on a separate survey from the jobs figures, ticked up to 4.2%. Markets have been jolted this year by the unfolding impact of the Trump administration’s trade policy and government layoffs. …”
 

A Trade War Puts Pressure on the Federal Reserve​

Lowering interest rates to soften the negative shock risks embedding higher inflation into the economy.​



“… Mr. Trump’s aggressive tariff policies pose another serious risk: The weaker economic activity, higher unemployment and likely increased prices that will result run counter to the Federal Reserve’s dual mandate of 2% inflation and maximum employment. This will strain the Fed’s monetary policy, pressuring it to make short-run decisions that may compound the longer-run costs of the tariffs.

… But lowering interest rates to mitigate the short-run economic effects of Mr. Trump’s tariffs could boost inflationary expectations and embed higher inflation in the economy. It could also embolden the Trump team to impose more tariffs, further harming economic performance. This would produce stagflation. Monetary ease is incapable of offsetting the economic inefficiencies and distortions created by the tariffs.

… Chairman Jerome Powell has properly emphasized that the Fed will remain independent while determining monetary policy. Congress—in particular, the Senate Banking Committee and House Financial Services Committee—must support the Fed at this critical juncture. All Americans benefit from an independent central bank that pursues stable, low inflation as the foundation of healthy economic growth. The Fed must now be guided by the lessons of history.”
 
nycfan said:
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HANK TOUGH, WE CAN’T LOSE!!!

Cracking Up Lol GIF by Rodney Dangerfield
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Just want to be sure I'm following Trump's logic this morning.

1. He did the tariffs to tank the markets so the rich lose money and it ends up with the middle class.

2. But as a result of the tariffs, foreign companies can move their manufacturing operations and get filthy rich by . . . um . . . exploiting the middle class?

No wonder our board Trumpers have disappeared. There's literally no way to spin this that doesn't make you look like an absolute idiot.
 
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