Economic News | Fed will wait and see about rate cuts

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Powell is right. They should take their time. This is really unprecedented in economic history, so there's no playbook. The Fed's economic analyses and internal modeling very likely does not include this scenario. It 100% does not include a scenario where the tariffs are calculated arbitrarily.

For the Fed to do its job correctly, it needs to study the issue, internally deliberate, solicit various opinions from economists, and think it through.

It is not the Fed's job to use monetary policy to rescue the country from idiotic fiscal policy or trade policy. And in fact, it can't really do that anyway.
 
nycfan said:
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1. They will adjust? I mean, we adjusted to the loss of Hans, Ty, Wayne, and Danny. We just didn't end up in a good place after the adjustments. And so too. The markets will adjust, but they might adjust to a considerably lower level.

2. This press conference to me drives home something I was thinking about last night: does Trump really have the patience to see this through? Trump can't keep his eyes on the prize for like a week. What makes us think that Trump will sit back and pile up political losses upon losses, without any victories, all in the name of some abstract economic policy that might do something good over the long-run. Trump hasn't thought about the long-run for his whole life.

I'm pretty sure that Trump's expectation -- this reminds of one of Homer's various ultra-competence fantasies -- was that other countries were just going to roll over in the face of American might, thus giving Trump the quick and easy victories he seeks.

When he's sending Rubio out to talk to the press about how great the tariffs are THE DAY AFTER, it tells me that they have no fortitude for a long fight. They very well might cave before the end of the month.
 
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