Posted on 09/18/2024 11:10:59 AM PDT by Aquamarine
The Federal Reserve cut interest rates by 50 basis points Wednesday, the central bank’s first rate reduction following a two-and-a-half year crusade against inflation that raged in the wake of the pandemic.
The new federal funds rate is 4.75 percent to 5 percent, a jumbo rate cut that signals the Fed’s confidence that its war against inflation is coming to an end.
The pandemic hit the economy hard, scrambling supply chains, shuttering stores and leading to layoffs of millions of Americans. When the world started to reopen in the spring of 2021, however, the economy went into overdrive.
The consumer price index (CPI), an inflation measure that tracks a handful of goods and services, soared above ideal levels. Although Biden administration officials initially waived off the increase as “transitory,” prices kept rising, and inflation hit the highest rate since 1982 in November 2021.
The Fed incrementally increased interest rates from near zero in March 2022 to a range of 5.25 to 5.5 percent last July as it battled rising inflation, which peaked at 9.1 percent in June 2022.
(Excerpt) Read more at thehill.com ...
From what I heard....a half point cut versus the quarter point means that there are serious issues that are concerning the fed....and the “soft landing” is not gonna happen
Juicing the economy to help Kamala?
No, it is just to make things look better for Kneels.
All that does is make the stock market go up. It doesn’t do anything for the fact we are in a recession and have been for several months and it will not correct. It either probably will make it worse. I predict that next year the Fed will be raising rates again because inflation once again be out of control not that it was ever under control right now. It’s all illusion.
Woopie! I guess inflation is no more.
“ Juicing the economy to help Kamala?”
The system is designed to protect the system.
A hedge against the potential Congressional shut down ? This drop is not a positive. The fox needs to be more systemic, cut federal spending
LOL... What propoganda. Inflation occured because of TWO reasons:
1. Biden’s energy policy sent energy costs through the roof. That rippled into every nook and cranny of the economy.
2. Printing money day and night.
The economy never overheated. The Fed is stupid.
The decision is irresponsible.
3. Bringing in millions of desireable non-documentable future citizens and paying for their housing food and walking around money with printed money.
The decision is irresponsible and will likely cook inflation.
Does anyone know if there is an election soon?
Choose the sentence ending:
1)...because inflation once again will be out of control in the Harris administration.
2)...to ensure a recession in the second Trump administration, causing a shift in both Houses of Congress to Democrat control.
War against inflation is coming to an end.
Not a chance until 2025 if Trump wins if not it’s going to take off like a wild fire investors are sh**ting razor blades right now the market is just keeping it’s head above the water.
If Harris wins it will be hell to pay and the democrats own it.
“The system is designed to protect the system.”
************
That is profoundly true and is becoming increasingly evident to many people.
A corollary to this axiom is “The government only tells us what they want us to know”.
Maybe someone better versed in economics can tell me how my interest rate of 4.5% can deal with an inflation rate of 7.5%
You have to save money for “black swan” events but our government purposely devalues that savings. WHY?
You are idiots if you think 2+2 = 1.
That’s what the government does with your money value.
Agree. They could have done 25bp and stated a strong bias toward more cuts sooner than later. That would have sent a better message than cutting by 50bp, which will be perceived by many as “strong medicine” and deepen concerns about recession. JMHO
Election freebies...................
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.