The rate cuts are in anticipation of a drawdown, it doesn’t cause it.
Powell is trying to lead the drop that the rate increases helped induce.
Whether his timing is right remains to be seen.
Election time…gas prices falling and so is inflation…short memories alone with propaganda and voila, more Marxism.
-PJ
Inflation hasn’t stopped. Normally rate cuts are meant to slow inflation. But in this case, inflation is killing the consumer. Spiking interest rates have killed real estate. It’s an election year.
So now we cut rates to stimulate an economy that is already massively inflationary. And the inflation is not due to a hot economy, it’s due to massive government money being pumped into the economy. But to mask it, we are going to lower rates and pump MORE money into the economy.... making more inflation, but they hope AFTER the election.
They have painted themselves into a monetary corner. If they don’t lower rates, the economy grinds down even slower and turns into a depression. If they do lower rates, they add more inflation fuel and we head onward to the coming depression.
Idiots.
There are a few who are predicting deflation next year - because they think we are heading for an outright depression.
Election year. Dem incumbent.
Frankly, I feel sorry for all the FReepers who talk about getting in/out of stocks because of this or that piece of news, legislation, etc.
Your best chance in the stock market seems to be buy and hold. Dollar cost averaging. With a couple of exceptions:
* You are invested in Berkshire Hathaway (the thing Warren Buffet and 2 buddies founded in the 1950s).
* You have contemporaneous knowledge of Nancy Pelosi’s trades.
I’m tired of the word MULTIPLE. Whatever happened to numerous, several, or many ?
“Historically, every major rate cut led to a 30% S&P 500 drawdown.”
Followed by a Bull market. This time we are still at historically low rates so we may not need “major” cuts.
My AMD stock went from $116.60 on 12-6-23 and on Wednesday 12-13-23 it was $138.19
In 5 trading days it went UP $21+ dollars 😁
Just as I thought it would happen. No more interest rate hikes and now news that interest rates will be lowered in 2024.
All due to the coming election.
The lies will be ramped up by Biden administration in 2024.
Sure they are...