“...but more rate cuts assumes an ever slowing economy and that’s not something to cheer for,” he added.”
Ok so this maroon is saying that lowering interest rates will slow the economy? This is some serious stupidity.
Tar Baby....................
FED mandate: Full employment, 2% inflation target.
Employment: Over full, statistically.
Inflation: 1.6%, below target.
1/4 point cut: Just fine, move on.
Goldilocks economy.
Take the win however keep pushing for more
Very likely another cut comes in December or January and once again around June next year
Winning!
Short rates are still above where the market would put them.
Anybody who supports the Fed, supports the manipulation of the markets by elitist Ivy Leaguers.
President Trump was correct in 2016 on the campaign trail:
https://www.realclearpolitics.com/video/2016/09/06/trump_the_fed_keeping_interest_rates_artificially_low_so_the_economy_doesnt_go_down.html
The N.Y. Fed printed $128 billion in the last 2 days to prevent a REPO melt down.
https://www.thestreet.com/investing/fixed-income/ny-fed-doubles-down-on-repo-intervention-as-bank-cash-crisis-rattles-markets-15094169
“Money for nothing and the chicks (black swan chicks) are free”:
https://youtu.be/lAD6Obi7Cag
“... but more rate cuts assumes an ever slowing economy and that’s not something to cheer for,” he added”
The rate cuts have absolutely nothing to do with a “slowing US economy”...which is record setting good.
They have to do with a half dozen EU countries trying to solve THEIR slowing economies with negative interest rates, and how those negative rates in turn affect currency valuations and imports/exports.
I happen to agree with this moderate move to offset the market distortions created by those negative rates. But there is another factor to be considered that people are missing.
Yes, global money is borrowing for less than nothing in Germany and other countries and buying US Treasuries with that money, bringing down the yield at bond auctions. But they are also going to be buying US equities, especially the ones that provide dividends. Think of it...borrow a million “dollars” worth of German money at nothing percent and using that money to buy shares of, say, Ford which is paying close to 6 1/2% dividend. Or some other US company.
Just my humble opinion on that last bit.
Can this Powell be fired?
??? Trump is playing this wrong. Isn’t begging for a rate cut tantamount to admitting the economy is NOT doing well?
Some people are speculating that Trump is going to come out with more tariffs in response to this by this weekend or at least tariff tweets.
It’s possible.
I am mostly closing positions at end of day for fear of the next twitter tirade.
The Fed clearly wants to get rid of Trump.
They get paid whether the economy tanks or not.
No more rate cuts means more currency in circulation to fuel Trumps manufacturing renaissance.