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 ...
Because they are designed from the gitgo to maintain a low level of inflation, low enough so the frogs don't know they are being boiled (i.e., a 1913 "dollar" is now 3 cents), and high enough to support the debt-based corruption we may refer to as Central Banking (aka, Central Bankstering).
I may be wrong, but I always figured that although inflation may be down, it is still based on highly inflated prices mostly created during the Biden administration. That wiuld mean that much of the reduced-inflation prices are still too high.
Q1 GDP was terrible: -0.6%, so annualized, we are only at 1.6% GDP growth. We’ll see how Q3 looks on Dec 23, but 1.6% growth and 3% inflation is not good.
“Inflation is waaaaay down from the Biden years...”
Down from the terrible middle years, but slightly higher than his last year, 2024. Much higher than any of Trump’s first four years.
Trump hasn’t even been President for a full year yet. The price of gasoline is way down from the Biden years too..
I couldn't possibly disagree more vehemently.
There's nothing "mild" about the stagflation in food prices, for example.
The only way out of this is to grow the economy & grow wages faster than the rate of inflation.
Any third year Economics student knows this.
Gas is down, but inflation is up 3% in spite of that.That means other things are up more than 3%.
BCAT pays 23% a year. It pays it monthly.
Well the bank is already hitting the interest rates on my savings account.
T-Bills beating bank rates and no state income tax on them in my state, don’t know if that’s the case everywhere. During the last low-interest period, T-Bills whacked MMFs big time. The banks got down to .5%, T-Bills were at 1.8%. Any port in a storm. 8% dividend looks pretty good now (Energy Transfer [ET]).
“I may be wrong, but I always figured that although inflation may be down, it is still based on highly inflated prices mostly created during the Biden administration. That wiuld mean that much of the reduced-inflation prices are still too high.”
As my biz partner used to say, “It just means you need to make more money.” Turned out he was right.
“BCAT pays 23% a year”
Watching it, but not biting yet. Schwab’s take:
“BCAT appears to be consolidating within a longer-term downtrend. The Average Directional Index, or ADX, is below 20, indicating that shares have traded sideways recently. However, the 200-day is still sloping bearishly lower. Comparative Relative Strength analysis shows that this issue is lagging the S&P 500.”
MarketEdge rating: AVOID.
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