Posted on 12/10/2025 12:05:35 PM PST by V_TWIN
The Federal Reserve Board voted to cut interest rates by another quarter-point, for the third month in a row. However, they seemed very unwilling to do more, as they are internally divided over which problem is worse, inflation or the job market.
The interest rate was cut to between 3.5 percent and 3.75 percent, a three-year low, and is aimed at protecting against a sharp slowdown in hiring. The vote was 9-3, which is the first time in six years that three officials dissented. Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeff Schmid argued that the reduction wasn’t needed, while Fed governor Stephen Miran favored a larger cut, by half a point.
The cut signals the Fed is more worried about the labor market than it is about inflation. Hiring has cooled in recent months as companies adjust to policy changes in trade and immigration policy. Unemployment sits at around 4.4 percent, and reports indicate weaker payroll gains amid broader economic adjustments.
(Excerpt) Read more at townhall.com ...
We are stuck in a mild stagflation at the moment. Not getting the needed growth from Big Beautiful Bill yet. Tariffs, IMO, could be helpful longterm, but are part of the problem right now.
Should have been .50%.
The fed is trying to make the tarrifs look ineffective, and hate it that the president is enacting his own monetary policies and not seeking their approval.
The fed is unconstitutional, I think.
Well the bank is already hitting the interest rates on my savings account. Money that I need going down the tubes. People that try to be responsible always get the shaft in this world. People that borrow, default and go bankrupt get the high end of the deal. And here comes another hit on the crack pipe.
“We are stuck in a mild stagflation at the moment. “
Inflation is dead.
Last GDP + 3.8%.
Traffic here is heaviest I have ever seen.
What traffic are you talking about?
The feds policies should not be contingent on employment at all. This was something cooked up during the Carter years. The fed needs to be concerned about dollar stability period.
Yeppers…rate cuts very, very, very good for PM’s.
Gold Price Performance USD
Change Amount %
Today +25.44 +0.60%
30 Days +96.81 +2.36%
6 Months +882.23 +26.53%
1 Year +1,486.21 +54.62%
5 Year +2,367.12 +128.65%
20 Years +3,680.14 +698.47%
goldprice.org - 15:43 NY Time
Silver Price Performance USD
Change Amount %
Today +1.46 +2.43%
30 Days +9.43 +18.52%
6 Months +24.22 +67.01%
1 Year +28.35 +88.57%
5 Year +36.41 +152.12%
20 Years +51.35 +570.29%
silverprice.org - 15:45 NY Time
If you look at the Federal Reserve Act of 1913 that created the Federal Reserve it says.
"The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."
“What traffic are you talking about?”
I drove cross state round trip Saturday. Mostly three lanes, bumper to bumper, both ways.
State 54, I-77, I-4, US/SR 528
A. Ghoulsee was an Obama flunkie. Smiles too much.
“Well the bank is already hitting the interest rates on my savings account.”
A few years ago MMFs were paying .5% interest on my savings. I thought, this is ridiculous and looked around a bit. 3 month T-Bills were paying 1.8%. And, no state income tax on T-Bill in my state. I thought, “That’s better than triple the return not even counting the tax savings, wake up!” I rode them up to 5.55%, the banks stayed behind the entire way. Same thing about to happen again, and I’m still riding them. I also have some 6m, and a few longer Bonds out to 3 years. 3 month paying 3.71% today. Easy no-risk money is good money for the safe part of our portfolios. Good luck and rock on!
Inflation is waaaaay down from the Biden years...
Ford for thought:
Avg inflation last 50 years: 3.8%
Last 20 years: 2.75%
Last 10 years: 3.1% (Avg is higher due to temporary COVID spike to 9%).
There is no big inflation problem, yet.
Completely unconstitutional. Violates Article 1 Section 8, on Coining money.
What the FED is doing is Papering money.
A steady amount of "low level" inflation ties to the increase in M2 money supply. Inflation is not the rise in prices, but the rise in the money supply in relation to the total goods and services.
“The FED target of 2% is pre-meditated theft.”
The FED “target” is 3%.
The FED can’t just say we are going to have 1% or 2% or 3% inflation. The FED can’t control rates, it can only influence them. Bond Market traders/investors have much more influence on rates than the FED. If Bonds take off in either direction the FED has to follow. Low inflation brings higher risk as it goes lower. The risk is falling into deflation, which is much more damaging to the economy than inflation. Study 1929-39 for more on that.
The inflation rate can’t be run at 1%, very dangerous.
Sorry, I mixed up my inflation types. The FED’s target is 2%.
That’s risky enough. I rather have the market set the rate but that has its own risks as well.
Yes, indeed, in a fiat system.
In a PM-backed system, inflation is tied to a balance between increasing economy (goods/services/population), increases to the supply of PM (mining, recycling) and decreases to PM (industrial).
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.